Free PRMIA 8010 Exam Questions

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Total 242 Questions | Updated On: Jun 16, 2026

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Question 1

Under the internal ratings based approach for risk weighted assets, for which of the following parameters must each institution make internal estimates (as opposed to relying upon values determined by a national supervisor):

A : obability of default

B : fective maturity

C : given default

D : posure at default

Answer: A

Question 2

There are two bonds in a portfolio, each with a marketvalue of $50m. The probability of default of the two bonds over a one year horizon are 0.03 and 0.08 respectively. If the default correlation is zero, what is the one year expected loss on this portfolio?

A : $11m

B : $5.26m

C : $5.5m

D : $1.38m

Answer: C

Question 3

Once the frequency and severity distributions for loss events have been determined, which of the following is an accurate description of the process to determine a full loss distribution for operational risk?

A : firm wide operational risk distribution is generated by adding together the frequency and severity distributions

B : firm wide operational risk distribution is generated using Monte Carlo simulations

C : firm wide operational risk distribution is set to be equal to the product of the frequency and severity distributions

D : frequency distribution alone forms the basis for the loss distribution for operational risk

Answer: B

Question 4

The risk that a counterparty fails to deliver its obligation upon settlement while having received the leg owed

to it is called:

A : e-settlement risk

B : edit risk

C : placement risk

D : ttlement risk

Answer: D

Question 5

A financial institution is considering shedding a business unit to reduce its economic capital requirements. Which of the following is an appropriate measure of theresulting reduction in capital requirements?

A : cremental capital for the business unit in consideration

B : oportionate capital for the business unit in consideration

C : rcentage of total gross income contributed by the business unit in question

D : rginal capital for the business unit in consideration

Answer: A

Page: 1 / 49

Total 242 Questions | Updated On: Jun 16, 2026

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