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NEW QUESTION: 1
DRAG DROP
Select and Place:
Answer:
Explanation:
NEW QUESTION: 2
Refer to the exhibit.
An engineer configures FCIP on a Cisco MDS 9000 Series switch. What is the result of implementing the configuration?
A. Compression is performed by using hardware
B. The switch attempts to make two TCP connections
C. Compression is performed by using software.
D. Mode2 is enabled by default.
Answer: A
NEW QUESTION: 3
Which of the following best describes economic capital?
A. Economic capital is the amount of regulatory capital that minimizes the cost of capital for firm
B. Economic capital is a form of provision for market risk losses should adverse conditions arise
C. Economic capital is the amount of regulatory capital mandated for financial institutions in the OECD countries
D. Economic capital reflects the amount of capital required to maintain a firm's target credit rating
Answer: D
Explanation:
Explanation
Economic capital is often calculated with a view to maintaining the credit ratings for a firm. It is the capital available to absorb unexpected losses, and credit ratings are also based upon a certain probability of default.
Economic capital is often calculated at a level equal to the confidence required for the desired credit rating.
For example, if the probability of default for a AA rating is 0.02%, and the firm desires to hold an AA rating, then economic capital maintained at a confidence level of 99.98% would allow for such a rating. In this case, economic capital set at a 99.8% level can be thought of as the level of losses that would not be exceeded with a 99.8% probability, and would help get the firm its desired credit rating.
Choice 'c' is the correct answer. Economic capital does not target minimizing the cost of capital, nor is it a provision for losses arising from market risk. The concept of economic capital is unrelated to where an institution or firm is based, therefore Choice 'a' is incorrect as well.
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