1. In the case of National Australia Bank, which of the following methods were used to exploit gaps in the control?

I. Entering false transactions

II. Using incorrect revaluation rates

III. Accounting irregularities

IV. Incorrectly recording genuine transactions

a) I b) I and II c) I, II, and IV

d) All I, II, III and IV

2. The major risk incurred in the WorldCom case was?

a) Market Risk

b) Credit Risk

c) Liquidity Risk

d) Operational Risk

3. Which of the following statement about National Australia Bank is true?

a) VAR for foreign currency options was not reliable because it was based on historical data

b) Warning signs from internal audit were properly and fully responded to

c) The traders speculated on the US dollar, betting that it would fall against the Australian dollar

d) Risk limit breaches were routinely reported to and approved

4. China Aviation Oil didn’t account for options time value?

a) True

b) False

5. Which of the following statement about China Aviation Oil case is true?

a) CAO hedged its positions with synthetic long positions in oil commodities

b) CAO hedged its positions with synthetic short positions in oil commodities

c) CAO hedged its position by selling volatility

d) None of the above

6. Which of the following statement about Bankgesellschaft Berlin case is false?

a) Aubis escaped bankruptcy thanks to Bankgesellschaft Berlin

b) Investors in Bankgesellschaft real estate funds had generous rental income

c) Investors in Bankgesellschaft real estate funds had attractive rate of returns

d) Aubis went bankrupt because it was unable to pay back money borrowed from Bankgesellschaft

7. Which of the following was not a risk incurred by Bankgesellschaft Berlin?

a) Market Risk

b) Operational Risk

c) Credit Risk

d) Reputation Risk