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NEW QUESTION: 1
Why is economic capital across market, credit and operational risks simply added up to arrive at an estimate of
aggregate economic capital in practice?
A. Regulators require banks to add up economic capital across market, credit and operational risks.
B. Since market, credit and operational risks are significantly different measures of risk, there is no
diversification benefit to computing economic capital to banks across types of risks.
C. In practice, it is very difficult to estimate the correlations between the risk categories and as a result a
conservative estimate is obtained by adding up the risks.
D. Market, credit and operational risks are perfectly correlated which justifies adding up their associated
economic capital.
Answer: C

NEW QUESTION: 2
A router is running three routing processes: RIP, OSPF, and EIGRP, each configured with default characteristics. Each process learns a route to the same remote network. If there are no static routes to the destination and none of the routes were redistributed, which route will be placed in the IP routing table?
A. the route learned through OSPF
B. the route learned through RIP
C. the route with the lowest metric
D. all three routes with the router load balancing
E. the route learned through EIGRP
Answer: E
Explanation:
Explanation/Reference:
Explanation:
http://www.cisco.com/en/US/tech/tk365/technologies_tech_note09186a0080094195.shtml Administrative distance is the feature that routers use in order to select the best path.
Administrative distance defines the reliability of a routing protocol. Each routing protocol is prioritized in order of most to least reliable (believable) with the help of an administrative distance value. Lowest Administrative distance will be chosen first.

NEW QUESTION: 3

Router 2 is receiving a route to 10.0.0.0/8 from Router 4 and Router 5. What will Router 2 do with the routes shown in the exhibit?
A. Router 2 will prefer the route received from Router 5 because it has a lower MED value.
B. Router 2 will mark both routes active if both next hops are reachable.
C. Router 2 will prefer the route received from Router 4 because of a lower origin code value.
D. Router 2 will prefer the route that arrived first because neither route is necessarily preferable over the other.
Answer: C