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NEW QUESTION: 1
A bank holds $10m of a corporate debt that it has purchased CDS protection against. What is the impact on the short term liquidity of the bank in the event of a default by the corporate on its bonds?
A. An immediate reduction in available liquidity
B. No impact
C. A short term increase in available liquidity
D. Cannot be determined without information on recovery rates
Answer: C
Explanation:
Explanation
The immediate impact of the default would be to improve the liquidity available in the short term due to the pay out from the CDSs.
It is also important to consider the impact on liquidity from the occurence of a default even in situations where CDS protection may not have been purchased. In such cases, there may be a nearer term payout in the form of the recovery rate. Of course, recovery payments are generally not realized for longer periods of time as court cases linger on, but there is a good likelihood that a payment, albeit lower in total, is likely to be realized sooner than the maturity of the bond in cases where the bond is a longer term bond. At the same time, any interest payments, and the final principal payment, which may have been included in liquidity projections, will not occur.
NEW QUESTION: 2
Which of the following statements about the gateway process of an SAP system are correct? (Choose three)
A. The gateway process is able to handle communication between different SAP systems and external programs.
B. One gateway process runs in each instance of the SAP system.
C. Only the central instance of an SAP system hosts a gateway process.
D. Remote Function Calls (RFC) are handled by the gateway process of the SAP system.
Answer: D
NEW QUESTION: 3
What two statements are true when you are using SQL Tuning Advisor and create a SQL Profile to improve performance of a SQL statement issued by a packaged application?
A. SQL Profiles can be used for non-Oracle databases like Microsoft SQL Server, if the Tuning Pack is licensed.
B. You need to regularly run SQL Tuning Advisor to verify if the SQL Profile can be replaced with a better one.
C. You can have only one SQL Profile active at one time for a single SQL statement.
D. You need Oracle Database 12c or later to use SQL Profiles.
E. The SQL Profile rewrites the SQL Statement issued by the application so it appears to the Optimizer as a perfectly written SQL statement.
F. After a SQL Profile is created, it will then run efficiently for the life of the database.
Answer: B,C