Online Access Free 8009 Practice Test

In the case of National Australia Bank, which of the following was present?

• A.Both A and B
• B.A window of time between close of day for reporting purposes and back office checking that allowed traders to hide losses using fictitious trades
• C.Neither A nor B
• D.The Board received risk management information that was incorrect, incomplete or insufficiently detailed

The sensitivity analysis required under IFRS would have done what for China Aviation Oil?

• A.Only provided the intrinsic value of its outstanding option positions
• B.None of the above
• C.Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices
• D.Only provided the time value of its outstanding option position

Bankgesellschaft Berlin's failures can be best characterised as

• A.credit risk caused by a diversified portfolio of poor-quality loans
• B.none of the above
• C.credit risk caused by overexposure to the property market
• D.both A and B

The failure of Washington Mutual was NOT due to which one of the following?

• A.Low lending standards and bad quality acquisitions
• B.Using a combination of subprime mortgage loans and credit cards
• C.It failed due to the poor quality of its assets
• D.A run on its deposits by bank customers

Which of the following was NOT a factor in the WorldCom collapse?

• A.Unfair pricing to customers
• B.Failed corporate governance
• C.Accounting abuses
• D.Over stating actual sales