fullofquestions
New Member
This question is phrased incorrectly. It is asking for the incorrect statement... Actually, the answer is incorrect, all three statements should be correct. Anyway, I simply care to understand better what 'Commercial Banking' refers to.
I have not found a good description for commercial banking. In some contexts it is described as some sort of retail banking but for way larger clients (large corporations and entities). Either way, could someone explain the major activities and risks?
Which of the following statements correctly describes the risks of commercial banking?
I. Commercial banking is more exposed to operational risk than credit risk.
II. Commercial banking is less exposed to market risk than operational risk.
III. Commercial banking is more exposed to credit risk than market risk.
a. I only
b. II and III
c. III only
d. I and III
Answer: a
I. Incorrect. Commercial banking is more exposed to credit risk than, operational risk.
II. Correct. Commercial banking is less exposed to market risk than operational risk.
III. Correct also. Commercial banking is more exposed to credit risk than market risk.
Therefore only answer a contains the sole incorrect statement, and so a is the correct answer.
a. Correct. Statement I s the only incorrect statement.
b. Incorrect. Both statements I and II are in fact correct – see above.
c. Incorrect. Statement III is correct – see above.
d. Incorrect. Statement I is incorrect however statement III is correct – see above.
I have not found a good description for commercial banking. In some contexts it is described as some sort of retail banking but for way larger clients (large corporations and entities). Either way, could someone explain the major activities and risks?
Which of the following statements correctly describes the risks of commercial banking?
I. Commercial banking is more exposed to operational risk than credit risk.
II. Commercial banking is less exposed to market risk than operational risk.
III. Commercial banking is more exposed to credit risk than market risk.
a. I only
b. II and III
c. III only
d. I and III
Answer: a
I. Incorrect. Commercial banking is more exposed to credit risk than, operational risk.
II. Correct. Commercial banking is less exposed to market risk than operational risk.
III. Correct also. Commercial banking is more exposed to credit risk than market risk.
Therefore only answer a contains the sole incorrect statement, and so a is the correct answer.
a. Correct. Statement I s the only incorrect statement.
b. Incorrect. Both statements I and II are in fact correct – see above.
c. Incorrect. Statement III is correct – see above.
d. Incorrect. Statement I is incorrect however statement III is correct – see above.
