This page was exported from Exam for engine [ http://blog.test4engine.com ] Export date:Mon Nov 18 2:48:43 2024 / +0000 GMT ___________________________________________________ Title: New 2024 Latest Questions 8004 Dumps - Use Updated PRMIA Exam [Q13-Q31] --------------------------------------------------- New 2024 Latest Questions 8004 Dumps - Use Updated PRMIA Exam Latest 8004 Exam Dumps PRMIA Exam from Training Expert Test4Engine QUESTION 13What was the most important loss for Bankers Trust?  Money due to unfavourable market moves  Loss of its’ reputation due to actions seen as detrimental to their clients  Loss of market share due to their licenses being revoked  Time spent on legal proceedings in courts QUESTION 14Metallgesellschaft’s retail contracts were  unhedged  hedged using exchange-traded futures with longer maturities than the retail contracts  hedged using exchange-traded futures with shorter maturities than the retail contracts  fully hedged using exchange-traded futures of the same maturities as the retail contracts QUESTION 15When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should …  Seek advice from a qualified party, being mindful of legal and confidentiality requirements  Modify the interpretation of local rules and regulations to meet the situation  Ignore local rules and regulations  Respect local rules and regulations QUESTION 16The Fortress Re accounting risk transfer procedures  made it straightforward for TFMI to determine whether risk had actually been transferred and they decided not to take out more catastrophe insurance cover  made it difficult for TFMI to determine whether risk had actually been transferred so they had to take out additional catastrophe insurance cover  made it straightforward for TFMI to determine when the risk had been transferred and to take out additional catastrophe insurance cover  made it difficult for TFMI to determine whether risk had actually been transferred and whether it had sufficient catastrophe insurance cover QUESTION 17A risk manager finds that a client is engaged in a practice that looks like money laundering.According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:  Approach the client about the concern, regardless of what their reaction might be  Respect the client’s confidentiality as that takes precedence  Report this conduct to their immediate supervisor  Report the findings immediately to authorities QUESTION 18According to the Group of 30 Report, important risks associated with dynamic hedging are:  Greater volatility than expected over the life of an option  Sudden gaps in market prices  Both A and B  Neither A nor B QUESTION 19The problems at Bankers Trust can best be characterized as failures related to:  Market Risk  Credit Risk  Operational and Regulatory Compliance Risk  All of the Above QUESTION 20Which of the following was NOT a factor in the Long Term Capital Management case?  Inadequate separation of front and back offices  Model risk  Changes/breakdowns in historical correlations  Unwinding of liquid positions at the beginning of major losses QUESTION 21The problems at Bankgesellschaft Berlin can best be characterized as failures related to:  Market Risk  Credit Risk  Operational Risk  Both B and C QUESTION 22What was the main type of risk that Metallgesellschaft was exposed to?  Basis Risk  Currency Settlement  Interest Rate  Inflation QUESTION 23A VaR model for managing market risk at Barings Bank in London would most likely have:  Alerted senior management to the problems before the major losses occurred  Helped very little as Nick Leeson hid many trades  Not correctly assessed the risk in Nick Leeson’s option trades as they have non-linear price characteristics  Been used if senior management had ever seen it QUESTION 24Taisei Fire and Marine Insurance Co  relied almost entirely on Fortress Re’s management team for information on the risks in its portfolio  relied on the information it received from other members of the reinsurance pool to manage its risks  had a full understanding from Fortress Re of the risks in the pool  had a full understanding from other members of the pool of the pool’s liabilities QUESTION 25The steps which the US Treasury Department and the Federal Reserve took in July 2008 to boost confidence in both Fannie Mae and Freddie Mac did not include which one of the following:  Access to the Federal Reserve discount window  Removing the prohibition on the Treasury Department to buy both companies stock  Restricting the sale of new Fannie Mae and Freddie Mac securities only to US citizens  Reiterating their belief that both companies played a central role in the US housing finance system QUESTION 26Washington Mutual’s acquisition of Long Beach Financial changed its business model and increased its credit loss profile because  The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDIC  the two banks were focussed in different markets  Long Beach Financial had losses which it hadn’t realized at the time of the takeover  Of a general deterioration of credit quality generally QUESTION 27The hedging strategy employed by MG Refining & Marketing has been called:  Dynamic hedging  A stacked hedge  A differential hedge  Nothing because MG Refining & Marketing did not hedge its position QUESTION 28The Q4 2003 trading strategy of China Aviation Oil was  to buy puts and sell calls  to buy calls and sell puts  to sell puts and buy calls  to sell calls and buy puts QUESTION 29Which of the following was NOT a factor in the National Australia Bank case?  Rogue traders  Improper or insufficient Board-level communication regarding the importance of risk management and oversight  Inadequate back office procedures  Money laundering using foreign exchange trades for political leaders QUESTION 30Which of the following would have contributed to noticing and preventing Leeson’s violations at Barings?  Separation of front and back offices  More senior level involvement at Barings regarding use of derivatives  Recognition that large profits can be an indicator of higher risk  All of the above QUESTION 31The Chair of the PRMIA Board of Directors may hold the following offices:  Parliamentarian  Secretary  Vice Chair  Chair only  Loading … Updated Test Engine to Practice 8004 Dumps & Practice Exam: https://www.test4engine.com/8004_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: 2024-01-13 09:02:54 Post date GMT: 2024-01-13 09:02:54 Post modified date: 2024-01-13 09:02:54 Post modified date GMT: 2024-01-13 09:02:54