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NEW QUESTION: 1
As part of designing a reverse stress test, at what point should a bank's business plan be considered unviable (ie the point where it can be considered to have failed)?
A. When the realization of risks leads market participants to lose confidence in the bank as a counterparty or a business worthy of funding
B. Where large known losses have been incurred on the bank's positions
C. Where EBITDA for the year is forecast to be negative
D. When the regulatory capital of the bank has been exhausted
Answer: A
Explanation:
Explanation
As part of a reverse stress test, a firm has to identify and assess the scenarios most likely to cause it to fail, or in other words using the language used by the FSA in the UK, for its current business plan to become unviable. A firm's business plan should be considered to become unviable at the point that crystallizing risks cause the market to lose confidence it it, with the consequence that counterparties and other stakeholders are unwilling to transact with it or provide capital to the firm and, where releant, that existing counterparties may seek to terminate their contracts. Recent experience suggests that this point is reached well before a firm's regulatory capital is exhausted.
Large known losses, or negative EBITDA (earnings before interest , tax, depreciation and amortization) may be indicators or contribute to the loss of confidence, but do not of themselves make the current business plan unviable. Therefore Choice 'd' is the correct answer.

NEW QUESTION: 2

A. Option C
B. Option A
C. Option B
D. Option D
Answer: A

NEW QUESTION: 3
An engineer sets up QoS over MPLS networks. How many classes of traffic can one LSP support?
A. as many as 8, because the EXP field is 3 bits
B. as many as 64, because the DSCP field is 6 bits
C. as many as 3, because the EXP field is 3 bits
D. as many as 6, because the DSCP field is 6 bits
Answer: A

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