FRM II-CR Test 4

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

FRM II-CR Test 4

Postby anbu.edu » Tue Sep 16, 2014 7:23 am

Which of these statements is most closely associated with ‘Ring Fencing’?
Select one:
a. It is useful when a high quality firm is looking to enter into a low quality project
b. A subsidiary can be allowed to gain a higher credit rating than the parent company
c. The subsidiary can be close to bankruptcy even though the parent company is not
d. It is valid when the parent company holds only a small amount of equity interest in the
subsidiary

i find all the answer appropriate to ring fencing. Can any one please say why we cant have other choices as answer

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

FRM II-CR Test 4

Postby edupristine » Sat Sep 20, 2014 7:05 am

Ans b is looking most closely associated with 'Ring Fencing'. The question is asking for most closely. Please always post a source of question.


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