Question: Questions: (a)Discuss the risks arising from both the banking book (intermediation business) and trading book of banks. (8 marks) (b) Explain how Value at Risk

Questions:

(a)Discuss the risks arising from both the banking book (intermediation business) and

trading book of banks.

(8 marks)

(b) Explain how Value at Risk models can be used by a bank to manage its market risk

exposure. Discuss the problems with these models.

(10 marks)

(c) Explain how interest rate risk can impact a bank.

(7 marks)

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