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: May 24, 2026

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Question 1

Which one of the following changes would typically increase the price of a fixed income instrument, such as a bond?

A : crease in inflation rates in a country

B : Increase in time to maturity.

C : crease in risk premium.

D : crease in demand for goods and services.

Answer: A

Question 2

According to the principles of the Basel II Accord, which one of the following influences the implementation and relative weights of the elements of the operational risk framework?

A : The banks reporting currency

B : The banks regulatory capital level

C : The banks culture

D : The banks economic capital level

Answer: C

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

Company A needs to provide a risk probability/frequency score for its RCSA program. If the

event is likely to happen once in 2 years, then the frequency score will be equal to:

A : 0.2

B : 0.5

C : 1

D : 2

Answer: B

Question 5

Which one of the following is a typical source of funding for a commercial banks assets?

A : Consumer deposits

B : Cash

C : Commercial lending

D : Commodities markets

Answer: A

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Total 390 Questions | Updated On: May 24, 2026

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