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PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

Last Update May 18, 2024
Total Questions : 110

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PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Questions and Answers

Questions 1

What was the most important loss for Bankers Trust?

Options:

A.

Money due to unfavourable market moves

B.

Loss of its' reputation due to actions seen as detrimental to their clients

C.

Loss of market share due to their licenses being revoked

D.

Time spent on legal proceedings in courts

Questions 2

The hedging strategy employed by MG Refining & Marketing has been called:

Options:

A.

Dynamic hedging

B.

A stacked hedge

C.

A differential hedge

D.

Nothing because MG Refining & Marketing did not hedge its position

Questions 3

According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:

Options:

A.

Gives an accurate result in most cases

B.

Captures portfolio effects but not tenor differences

C.

Can easily reflect the impact of netting

D.

Overstates exposure in most cases