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3I0-012 · Question #46

3I0-012 Question #46: Real Exam Question with Answer & Explanation

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Question

Supervisors would generally consider interest rate risk exposure in the banking book excessive beginning at what level of losses given a +1- 200 bps market rate movement?

Options

  • A
    2% of 6 months forward earnings
  • B
    20% of regulatory capital
  • C<10% of regulatory capital
  • D< 5% of 12 months forward earnings

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