All of the following are correct about stress testing except: a. It is done under normal going concern environment. b. It is done to determine if the financial institution is able to survive a liquidity crisis under extreme stress conditions. c. It is done when needed such as in a company specific crisis. d. In volatile conditions, stress testing using at least one scenario is required.
All of the following are correct about stress testing except: a. It is done under normal going concern environment. b. It is done to determine if the financial institution is able to survive a liquidity crisis under extreme stress conditions. c. It is done when needed such as in a company specific crisis. d. In volatile conditions, stress testing using at least one scenario is required.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
All of the following are correct about stress testing except:
a.
It is done under normal going concern environment.
b.
It is done to determine if the financial institution is able to survive a liquidity crisis under extreme stress conditions.
c.
It is done when needed such as in a company specific crisis.
d.
In volatile conditions, stress testing using at least one scenario is required.
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