Banking Practice Exam

The correct answer indicates that an increase in the number of securities underwritings was not listed as a key risk in Goldman Group's 2007 annual report. Key risks that banks typically report focus on factors that can negatively impact their financial performance and stability. In this context, risks such as widening credit spreads, declines in equity values, and increases in market volatility are common concerns in the banking and financial sectors as they relate directly to market conditions and the bank's ability to operate profitably.

An increase in the number of securities underwritings, however, would generally be viewed more as an operational opportunity rather than a risk. Increased underwriting activity can lead to higher revenues and market share, which is often welcomed by financial institutions. Therefore, this aspect is less likely to be highlighted as a key risk compared to the other options, which involve potential adverse market movements and their implications for asset valuations and liquidity.