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NEW QUESTION: 1
Which of the following statements is NOT true in relation to the recent financial crisis of 2007-08?
A. Counterparty risk was difficult to gauge as it was impossible to know who the counterparty's counterparties were
B. Central banks had data on the interconnections between institutions, but poor understanding and analysis meant this data was never analyzed
C. The existence of central counterparties could have limited the damage caused by the financial crisis
D. An intention to diversify from their core activities led all market participants to the same activities, which though appearing diversified at the bank's level, created a concentration risk at the systemic level
Answer: B
Explanation:
Explanation
Counterparty risk was difficult to gauge as it was impossible to know who the counterparty's counterparties were - this is true as the chain of financial transactions became excessively long with no central transparency of who owed who what. Bank A's credit depended upon the health of its counterparties, whose health in turn depended upon other counterparties. Thus Choice 'd' is a correct statement.
In an attempt to diversify, banks became more like each other - chasing yield, they piled into securitized products, and chasing diversification, they piled into different types of securitized products. The system as a whole became susceptible to small shocks in the assets underlying this vast edifice of structured products.
Therefore Choice 'a' represents a correct statement.
Choice 'c' does not represent a correct statement. Central banks had little data on the interconnections between institutions. They were aware of the large volumes of OTC transactions, but had no data to figure out who was connected to who, and who had what kind of exposures.
Choice 'b' represents a correct statement. Most transactions, other than exchange cleared futures trades (which were a tiny fraction of all trades) were cleared on a bilateral basis. The existence of central counterparties (CCPs) could have limited the impact of the crisis significantly as market participants would not have lost trust in each other, and the 'collateral damage' that was witnessed from a fall in housing prices, and thereby mortgage assets, would have been more contained.
NEW QUESTION: 2
How does MPLS BGP VPN handle the problem of address overlapping of different VPN sites?
A. To allocate unique RT for each VPN.
B. To allocate unique RD for each VPN.
C. To maintain separate VRF lor different VPN.
D. To allocate different LSP for each VPN.
E. To use different routing protocols In the backbone network for afferent VPN.
Answer: E
NEW QUESTION: 3
Which buying model for Meetings in the Cisco Collaboration Flex Plan is valid?
A. Meetings are not available on the Collaboration Flex Plan
B. Enterprise Agreement only
C. Named User only
D. Enterprise Agreement Active User and Named User
Answer: D
Explanation:
Explanation
https://www.cisco.com/c/en/us/products/collateral/unified-communications/spark-flex-plan/datasheet-c78-74039
NEW QUESTION: 4
A message can contain up to six fields. Determine whether this statement is true or false
A. True
B. False
Answer: B