When banks calculate the losses the institution would incur if an unusual combination of bad events happened, the bank is using the ________ approach.

When banks calculate the losses the institution would incur if an unusual combination of bad events happened, the bank is using the ________ approach.

When banks calculate the losses the institution would incur if an unusual combination of bad events happened, the bank is using the ________ approach.




A) stress-test
B) value-at-risk
C) trading-loss
D) maximum value



Answer: A