PKMC Module IV Practice Questions - Pasaran Kewangan Malaysia Certificate (PKMC) Module IV - Risk Management And Basic Derivatives Exam

Which of the following is considered an operational risk event in treasury operations?

A dealer enters an incorrect trade yield in the trading system, resulting in a mispricing settlement loss. Interest rates rise, causing the value of a bank's fixed-rate bond portfolio to decline. A counterparty bank goes into liquidation and defaults on a forward FX contract. A sudden downgrade of a sovereign rating causes corporate bond spreads to widen, reducing market liquidity.

Correct Answer:

A dealer enters an incorrect trade yield in the trading system, resulting in a mispricing settlement loss.

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