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8008 Dumps With Exact Questions and Answers

Exact2pass Provides 100% Valid PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition 8008 Exam dumps Questions and answers which can helps you to Pass Your Certification Exam in First Attempt.

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8008 Questions and Answers

Question # 1

Which of the following is true in relation to a Contingency Funding Plan (CFP)?

I. A CFP is like a disaster recovery plan to deal with a liquidity crisis

II. A CFP should consider market stress conditions, but failures of payment systems are not relevant as they fall under the remit of operational risk

III. Reputational damage may result if the market finds out that a firm has had to execute its CFP

IV. Sources of emergency funding considered in the CFP should include the role of the central bank as the lender of last resort

A.

I and III

B.

IV

C.

I, II and III

D.

II and IV

Question # 2

Under the standardized approach to determining operational risk capital, operations risk capital is equal to:

A.

a fixed percentage of the latest gross income of the bank

B.

a varying percentage, determined by the national regulator, of the gross revenue of each of the bank ' s business lines

C.

15% of the average gross income (considering only the positive years) of the past three years

D.

a fixed percentage (different for each business line) of the gross income of the eight specified business lines, averaged over three years

Question # 3

Which of the following decisions need to be made as part of laying down a system for calculating VaR:

I. How returns are calculated, eg absoluted returns, log returns or relative/percentage returns

II. Whether VaR is calculated based on historical simulation, Monte Carlo, or is computed parametrically

III. Whether binary/digital options are included in the portfolio positions

IV. How volatility is estimated

A.

I, II and IV

B.

II and IV

C.

I and III

D.

All of the above

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