The problems in the Orange County case can best be characterized as failures related to:A . Market RiskB . Credit RiskC . Operational and Regulatory Compliance RiskD . All of the AboveView AnswerAnswer: A
Which of the following was NOT a factor in the Long Term Capital Management case?A . Inadequate separation of front and back officesB . Model riskC . Changes/breakdowns in historical correlationsD . Unwinding of...
The key people involved in the application of good governance and risk management must: I. be trustworthy II. be honest III. be approved by the local regulator IV. treat others fairly at all timesA...
Unlike the case at Barings Bank, National Australia Bank:A . Had a risk management infrastructure that was credited with doing its' job well, despite the lossesB . Was not dealing in derivativesC . Had...
Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?A . Ensure globally accepted standards are adhered to at all...
The "Renewing the Dream" program signed into law by President George W Bush in 2002 was designed toA . Recapitalise Fannie Mae and Freddie Mac with US$2.4 billion of additional capital to ensure they...
The condition where futures prices of an underlying asset are lower than cash (spot) prices is known as:A . BackwardationB . ContangoC . Reverse backwardationD . ConchachaView AnswerAnswer: A
Zheng Zhu wants to open a new PRMIA Chapter in Wuhan, China. He can do this if:A . At least 100 members live within 50 milesB . A local business sponsors the chapterC ....
Up until 2006, which of the following was not a primary driver for Washington Mutual's earning?A . Lending to consumers and small businesses.B . Deposit taking activities which generated net interest income.C . The...
Which of the following should NOT be part of the Risk Management Infrastructure?A . Define the organization's definition of risk management as articulated by the Board in clear and uncertain termsB . Include financial...
