Free 8004 – PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Practice Test Question

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Showing 7–9 of 10 questions

Question 7

According to the Group of 30 Report, option contracts:

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    Always generate credit risk to both counterparties

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    Create credit risk only for the buyer (due to default by the seller) provided the premium is due, and paid, at contract initiation

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    Create no credit risk, since the buyer need not exercise the option

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    Usually create credit risk only for the seller (to default by the buyer)

Question 8

The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?

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    LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit Protection

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    Corporate Governance; Moral Hazard; Role of Government; and Credit Risk

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    Deposit Protection; Moral Hazard; Business Model; and LPHI Risk

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    Business Model; Corporate Governance; Moral Hazard; and Deposit Protection

Question 9

Zheng Zhu wants to open a new PRMIA Chapter in Wuhan, China. He can do this if:

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    At least 100 members live within 50 miles

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    A local business sponsors the chapter

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    Approved by the Board of Directors

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    All of the above