This page was exported from Exam for engine [ http://blog.test4engine.com ] Export date:Mon Nov 18 3:44:15 2024 / +0000 GMT ___________________________________________________ Title: Updated Jun 16, 2022 Verified Pass 2016-FRR Exam in First Attempt Guaranteed [Q34-Q48] --------------------------------------------------- Updated Jun 16, 2022 Verified Pass 2016-FRR Exam in First Attempt Guaranteed Free 2016-FRR Sample Questions and 100% Cover Real Exam Questions (Updated 345 Questions) Become familiar with the GARP and GARP 2016-FRR? As an international professional association, the GARP fosters and promotes management education, research, and practice in the fields of insurance, banking, securities, and other financial services. They provide important resources for professionals in financial management in order to advance their careers. Fare Risks & Regulation, or FRR certification, is a professional designation offered by GARP to recognize candidates who have demonstrated a piece of knowledge and competence in the field of financial management. The 2016-FRR is updated on an annual basis. GARP's Financial Regulation Certification is the only globally recognized certification in financial management. It has been developed by the GARP, which plays a vital role in the global management community. The GARP FRM certification will give you a deep understanding of financial products, including derivatives, structured products, portfolio management products, etc. This will help you to develop an appreciation for the complex issues facing risks professionals working on Financial Management projects of any scale or complexity. GARP 2016-FRR exam dumps and papers help the candidates to prepare for 2016-FRR. Unused or outdated skills and knowledge could potentially be detrimental to your career and the organization. Through the GARP certification program, you can assure your skills and knowledge are current and relevant. What is the Passing Score, Duration & No. of queries for the GARP 2016-FRR: Format of 2016-FRR: All multiple choiceNumber of Questions: 80Language: EnglishDuration: 175 minutesPassing score: 54/80 (67.5%)   QUESTION 34Which one of the following four variables of the Black-Scholes model is typically NOT known at a point intime?  The underlying relevant exchange rates  The underlying interest rates  The future volatility of the exchange rates  The time to maturity QUESTION 35Which one of the following four statements about planning for the operational risk framework isINCORRECT?  Planning for the operational risk framework involves setting clear goals, realistic milestones andachievable deliverables that add value.  An operational risk framework is a complex and evolving challenge, and to keep its development undercontrol it is important to apply strong project management skills to the design and implementation ofeach new element.  Planning for the operational risk framework suggests that short-term planning and focus on immediatebenefits is strongly preferred to the long-term planning approach.  Once the elements of an operational risk framework are up and running, they need to be monitored toensure they maintain their integrity and do not deteriorate over time. QUESTION 36The skewness of ABC company’s stock returns equal -1.5. What is the correct interpretation of this?  It indicates higher relative probability of negative returns compared to estimates derived from a normaldistribution.  It indicates that the returns are indeed normally distributed.  It indicates lower probability of extreme negative events compared to the normal distribution.  It indicates higher relative probability of extreme events than non-extreme events compared to estimatesfrom a normal distribution. QUESTION 37Bank Milo has $4 million in cash and $5 million in loans coming due tomorrow with an expected default rateof 1%. The proceeds will be deposited overnight. The bank owes $ 9 million on a securities purchase thatsettles in two days and pays off $8 million in commercial paper in three days that is not expected to renew. Onwhat days does the bank face negative cumulative liquidity?  Day 3 only.  Days 2 and 3.  Day 2 only.  Days 1, 2 and 3. QUESTION 38Which one of the four following statements about technology systems for managing operational risk eventdata is incorrect?  Operational risk event databases are always integrated with the other components of the operational riskmanagement program.  Operational risk loss event data collection software can be internally developed.  Operational risk event databases are independent elements of the operational risk managementframework.  The implementation of a new operational risk event loss database has to incorporate an analysis of theadvantages and disadvantages of external systems. QUESTION 39Bank Sigma takes a long position in the oil futures market that requires a 2% margin, i.e., the bank has todeposit 2% of the value of the contract with the broker. The futures contracts were priced at $50 per barrel(bbl) at inception, and rose by $5 to $55. The VaR on the position is estimated to be $10. What is the return onthis transaction on a risk adjusted basis?  50%  10%  500%  20% QUESTION 40What is the order in which creditors and shareholders get repaid in the event of a bank liquidation?  Depositors, shareholders, debt holders.  Debt holders, depositors, shareholders.  Depositors, debt holders, shareholders.  Depositors, shareholders, depositors. QUESTION 41Which one of the following four statements correctly describes an American call option?  An American call option gives the buyer of that call option the right to buy the underlying instrument onany date up to and including the expiry date.  An American call option gives the buyer of that call option the right to sell the underlying instrument onany date up to and including the expiry date.  An American call option gives the buyer of that call option the right to buy the underlying instrument onthe expiry date.  An American call option gives the buyer of that call option the right to sell the underlying instrument onthe expiry date. QUESTION 42Gamma Bank provides a $100,000 loan to Big Bath retail stores at 5% interest rate (paid annually). The loan iscollateralized with $55,000. The loan also has an annual expected default rate of 2%, and loss given default at50%. In this case, what will the bank’s expected loss be?  $500  $750  $1,000  $1,300 QUESTION 43Alpha Bank determined that Delta Industrial Machinery Corporation has 2% change of default on a one-yearno-payment of USD $1 million, including interest and principal repayment. The bank charges 3% interest ratespread to firms in the machinery industry, and the risk-free interest rate is 6%. Alpha Bank receives bothinterest and principal payments once at the end the year. Delta can only default at the end of the year. If Deltadefaults, the bank expects to lose 50% of its promised payment. Hence, the loss rate in this case will be  1%  3%  5%  10% QUESTION 44James Johnson bought a 3-year plain vanilla bond that has yield of 4.7% and 4% coupon paid annually, for$87,139. Macauley’s duration of the bond is 2.94 years. Rate volatility is 20% of the yield. The bond’sannualized volatility is therefore:  3.15%.  2.90%.  2.81%.  2.64%. QUESTION 45Asset and liability management is typically concerned with all of the following activities:I. Maintaining the desired liquidity structure of the bank.II. Managing the factors affecting the structure and composition of a bank’s balance sheet.III. Effectively transferring the interest rate risk in the banking book to the investment bank at a fair transferprice.IV. Focusing on the circumstances impacting the stability of income the bank generates over time.  I  II, III  III, IV  I, II, IV QUESTION 46Which one of the following areas does not typically report into a central operational risk function?  Business continuity planning  Information security  Geopolitical and strategic planning  Embedded operational risk coordinators or specialists or managers QUESTION 47Mega Bank holds a $250 million mortgage loan portfolio, which reprices every 5 years at LIBOR + 10%. Thebank also has $150 million in deposits that reprices every month at LIBOR + 3%. What is the amount of MegaBank’s rate sensitive assets?  $100 million  $150 million  $200 million  $250 million QUESTION 48An options trader for a large institutional investor takes a long equity option position. Which of the followingrisks need to be considered when taking this position?I. All the risks of underlying equitiesII. Perceived volatility changesIII. Future dividends yieldsIV. Risk-free interest rates  I, II  II, III  III, IV  I, II, III, IV  Loading … Job opportunities after getting GARP 2016-FRR Certification Once you have obtained the certification, there are various jobs available to you like Risks Management Specialist, Management Expert, Analyst, Consultant, or Manager. You can choose to work in an investment bank or a consultancy. 2016-FRR exam dumps are key to your success. You should be aware that the investment banking industry is extremely competitive, so you need to be very well-qualified for this job if you are interested in it. The management sector also has very high competitive pressures. This means that only the best managers will be able to secure this job because of their qualifications and experience. Rules can be found online to see who is eligible to take the GARP 2016-FRR Certification. Collection of meta mock tests are available online. You can download them and make your preparation easier.   Download Real GARP 2016-FRR Exam Dumps Test Engine Exam Questions: https://www.test4engine.com/2016-FRR_exam-latest-braindumps.html --------------------------------------------------- Images: https://blog.test4engine.com/wp-content/plugins/watu/loading.gif https://blog.test4engine.com/wp-content/plugins/watu/loading.gif --------------------------------------------------- --------------------------------------------------- Post date: 2022-06-16 16:58:03 Post date GMT: 2022-06-16 16:58:03 Post modified date: 2022-06-16 16:58:03 Post modified date GMT: 2022-06-16 16:58:03