Free Online PRMIA 8008 Practice Test

Prepare Your PRMIA 8008 Exam Questions with Free online 8008 Practice Test. Get Brilliant PRM Certification - Exam III: Risk Management Frameworks . Operational Risk . Credit Risk . Counterparty Risk . Market Risk . ALM . FTP - 2015 Edition Exam Results with Valid 8008 Exam Dumps.

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Total 365 Questions | Updated On: May 14, 2024

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Question 1

An assumption regarding the absence of ratings momentum is referred to as:

A : Ratings stability

B : Time invariance

C : Markov property

D : Herstatt risk

Answer: B

Question 2

Which of the following risks were not covered in detail in most stress tests prior to the current crisis:

I,The behavior of complex structured products under stressed liquidity conditions

II,Pipeline or securitization risk

III,Basis risk in relation to hedging strategies

IV. Counterparty credit risk

V, Contingent risks

VI,Funding liquidity risk

A : I, IV and VI

B : I, II, III, IV and VI

C : II, III and V

D : All of the above

Answer: D

Question 3

Which of the following does not affect the credit risk facing a lender institution?

A : The state of the economy

B : The applicability or otherwise of mark to market accounting to the institution

C : Credit ratings of individual borrowers

D : The degree of geographical or sectoral concentration in the loan book

Answer: B

Question 4

A risk analyst uses the GARCH model to forecast volatility, and the parameters he uses are = 0.001%, = 0.05 and = 0.93. Yesterday's daily volatility was calculated to be 1%. What is the long term annual volatility under the analyst's model?

A : 3.54 %

B : 0.25 %

C : 0.22 %

D : 7.94 %

Answer: A

Question 5

Which of the following statements is true in relation to collateral management?

I,A collateral management system need not consider the failure by counterparties to return collateral when due

II,The extent to which counterparties may have rehypothecated collateral is not a consideration for a collateral management system

III,Cash is an acceptable substitute for any type of collateral required to be posted

IV. Haircuts do not apply to treasury issued instruments posted as collateral

A : I, II and III

B : I, II, III and IV

C : II and III

D : None of the statements is true

Answer: D

Page: 1 / 73

Total 365 Questions | Updated On: May 14, 2024

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