Free GARP ICBRR Exam Dumps Questions & Answers

From a risk point of view, which of the following factors will generally lead to the fluctuation of equity values with industry P/E levels and a company's individual earnings?
I. Sales
II. Cost management
III. Commercial success of the company
IV.
Market sentiment

• A.II, IV
• B.I, II, III
• C.III, IV
• D.I, II

A large multinational bank is concerned that their duration measures may not be accurate since the yield curve shifts are not parallel. Which of the following statements would be typically observed regarding variability of interest rates?

• A.Short-term rates are less variable than long-term rates.
• B.Short-term rates and long-term rates always move in opposite directions.
• C.Short-term rates are equally variable as long-term rates.
• D.Short-term rates are more variable than long-term rates.

Counterparty credit risk assessment differs from traditional credit risk assessment in all of the following features EXCEPT:

• A.Exposures can often be netted
• B.Exposure at default may be negatively correlated to the probability of default
• C.Counterparty risk creates a two-way credit exposure
• D.Collateral arrangements are typically static in nature

Which one of the four following statements about drawdowns is correct?

• A.Drawdown calculates significant losses in a particular business or a book.
• B.Drawdown estimates the effect on bank's liabilities when the bank's credit rating is cut.
• C.Drawdown quantifies the peak-to-trough decline of an investment over a known time period.
• D.Drawdown measures the aggregate decline in market values of assets and positions due to a shock.

To hedge a foreign exchange exposure on behalf of a client, a small regional bank seeks to enter into an offsetting foreign exchange transaction. It cannot access the large and liquid interbank market open primarily to larger banks. At which one of the following exchanges can the smaller bank trade the currency futures contracts?
I. The Tokyo Futures Exchange
II. The Euronext-Liffe Exchange
III.
The Chicago Mercantile Exchange

• A.III
• B.II, III
• C.I, II, III
• D.I