Free PRMIA 8004 Exam Dumps Questions & Answers

According to the G-30 Study, the risk management infrastructure's funding must be

• A.determined at the Board level without influence by business unit leaders
• B.determined by business-unit leaders
• C.determined at the Board level with inputs from business unit leaders
• D.determined by the regulators

According to the Group of 30 Report, option contracts:

• A.Create credit risk only for the buyer (due to default by the seller) provided the premium is due, and paid, at contract initiation
• B.Always generate credit risk to both counterparties
• C.Usually create credit risk only for the seller (to default by the buyer)
• D.Create no credit risk, since the buyer need not exercise the option

Which of the following was not considered to be a positive outcome of the Northern Rock Case Study?

• A.The role of the UK government and the possible underwriting of risks by tax-payers, and the general question of Moral Hazard
• B.The original successful business model had not stress tested sufficiently for the incidence of Low Probability, High Impact incidents
• C.It emphasised the importance of effective governance arrangements within financial firms
• D.The reform of the Deposit Protection Scheme because of its internal inconsistencies

With respect to the Purpose of Professional Standards, in the event of any difference in standards between local laws/rules and those of PRMIA, members must

• A.abide by the applicable laws, rules, and regulations of PRMIA and any government and/or regulatory bodies
• B.refer the matter to their supervisor
• C.comply with the higher standard under all circumstances
• D.use their best judgment

What was the main type of risk that Metallgesellschaft was exposed to?

• A.Currency Settlement
• B.Interest Rate
• C.Basis Risk
• D.Inflation