FRM II-CR 18

anbu.edu
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FRM II-CR 18

Postby anbu.edu » Wed Aug 20, 2014 7:56 am

Securitization of trade receivables transfers which risk(s)?
A) Credit risk.
B) Market risk.
C) Credit and market risk.
D) Credit, market, and operational risk.
The correct answer was A) Credit risk.
By monetizing the asset, the originator has transferred the credit risk to the SPE.

Can the answer be D

edupristine
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FRM II-CR 18

Postby edupristine » Wed Aug 20, 2014 12:23 pm

D can't be the answer.
Because at some condition it will affect operational risk but it won't affect market risk.


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