Free GARP 2016-FRR Exam Questions

Become GARP Certified with updated 2016-FRR exam questions and correct answers

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Total 390 Questions | Updated On: Jul 28, 2025

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Question 1

Which one of the following four global markets for financial assets or instruments is widely believed to be the most liquid?

A : uity market

B : reign exchange market.

C : xed income market

D : mmodities market

Answer: B

Question 2

For a bank a 1-year VaR of USD 10 million at 95% confidence level means that:

A : ere is a 5% chance that the bank would lose less than USD 10 million in a year.

B : ere is a 5% chance that the bank would lose more than USD 10 million in a year.

C : ere is a 5% chance that the worst loss would be USD 10 million in a year.

D : ere is a 5% chance that the least loss would be USD 10 million in a year.

Answer: B

Question 3

Which one of the following four statements regarding the analysis of recoveries in operational risk reporting is correct?

A : Recoveries are usually driven by automated processes

B : Recovery analysts cannot be used to improve the recovery rate

C : Recovery analysis can demonstrate the importance of the operational risk function

D : The experience of personnel within the recovery team has no effect on the recovery rate

Answer: C

Question 4

The technique of using interest rate swap positions to reduce the effect of the variability of interest rates on net interest income is known as:

A : Inoculation

B : Vaccination

C : Immunization

D : Insulation

Answer: C

Question 5

Which of the following about the ratios between various Tiers of capital is not a requirement

of the Basel Committee?

A : er 2 capital cannot exceed 50% of the bank's total regulatory capital.

B : novative instruments in Tier 1 are limited to a maximum of 15% of Tier 1 capital.

C : wer Tier 2 capital may only equal 50% of core capital.

D : per Tier 2 capital may only equal 30% of core capital.

Answer: B

Page: 1 / 78

Total 390 Questions | Updated On: Jul 28, 2025

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