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NEW QUESTION: 1
Which account assignment categories are available for performing a budget check in SAP Ariba Buying and Invoicing?
Note: There are 2 correct answers to this qustion.
A. Cost center
B. Internal order
C. WBS element
D. Asset
Answer: B,C
NEW QUESTION: 2
The ranking of jobs for the dispatch list is created through the application of which of the following priority rule?
A. Earliest operation due date
B. Shortest process time
C. First come, first served
D. All of the above
Answer: D
NEW QUESTION: 3
A loan portfolio's full notional value is $100, and its value in a worst case scenario at the 99% level of confidence is $65. Expected losses on the portfolio are estimated at 10%. What is the level of economic capital required to cushion unexpected losses?
A. 0
B. 1
C. 2
D. 3
Answer: B
Explanation:
Explanation
Expected value = $90 ($100 - 10%)
Value at 99% confidence level = $65
Therefore economic capital required at this level of confidence = $90 - $65 = $25.
Choice 'a' is the correct answer, the other choices are not.
(We can also look at it this way as explained in section III.B.6.2.2 of the handbook: Economic capital is designed to absorb unexpected losses, which are equal to total losses at a given confidence level minus expected losses. (Expected losses are to be covered by credit reserves). Total losses are $100-$65=$35, and expected losses are 10%*$100=$10, therefore economic capital should be $35-$10=$25.)
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