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Business English Exercises
 

Credit Risk

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 362
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credit risk answer 1
The credit crisis of 2007 has market participants worldwide paying more attention than ever to the astute management of their risk exposures.

Correct answer: (b) astute

Meaning of business term astute
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credit risk answer 2
No investment, trading counterparty or client is completely pristine and free of risk, says Frank Reiss of Euroclear.

Correct answer: (b) pristine

Meaning of business term pristine
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credit risk answer 3
This sentiment has permeated to the short-term cash markets as well, with treasury desks acutely aware that the reluctance of certain banks to lend freely in the inter-bank market is creating caution and apprehension among the most seasoned professionals.

Correct answer: (b) permeated

Meaning of business term permeated
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credit risk answer 4
Risk-taking brings profit, but good risk management allow firms to keep it; for example, the growing over-the-counter (OTC) derivatives market involves lots of risk and provides handsome rewards for those that navigate well.

Correct answer: (c) handsome

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credit risk answer 5
The three foremost derivatives classes — interest rate swaps, equity and credit derivatives — have soared to 327 trillion outstanding according to International Swaps and Derivatives Association figures; however, this meteoric growth has not been matched by adequate attention to operational risks.

Correct answer: (b) meteoric

Meaning of business term meteoric
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credit risk answer 6
In fact, the rise in OTC derivatives trading and the lack of post-trade standardisation and automation is a cause for serious concern; today, firms grapple with piles of unprocessed transactions, leading to severe breaks in reconciliation, and problems with collateral and exposure management further downstream.

Correct answer: (c) grapple

Meaning of business term grapple
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credit risk answer 7
Adding to this operational conundrum is the November 2007 Basel II deadline — guidelines that set out to segregate operational risk from credit risk.

Correct answer: (d) segregate

Meaning of business term segregate
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credit risk answer 8
As from 1 November, firms will be required by law to have rigorous risk and capital management measures in place, designed to ensure that banks hold capital reserves commensurate to the risk exposures arising from their lending and investment practices.

Correct answer: (a) commensurate

Meaning of business term commensurate
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credit risk answer 9
Today's changing market dynamics and the vast sums at stake have rocked the market into greater risk awareness.

Correct answer: (d) stake

Meaning of business term stake
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credit risk answer 10
And as the market knows only too well, dynamics that are not managed can entail untold financial risks.

Correct answer: (d) entail

Meaning of business term entail
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credit risk, question 10 business management consultants, what does entail mean? what is the definition for entail?

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
You will be exposed to a wealth of authentic sample sentences that include a great variety of themes. This compact Business English Test Package is the only printable English test collection currently available on the Internet. It contains 501 Business English Exercises (10 questions per test plus answer keys).  Get your unique Business English Practice Exercises now!

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