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PRMIA 8004 Exam With Confidence Using Practice Dumps

Exam Code:
8004
Exam Name:
PRM Certification - Exam IV: Case Studies
Certification:
Vendor:
Questions:
0
Last Updated:
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Exam Status:
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PRMIA 8004

8004: PRM Certification Exam 2024 Study Guide Pdf and Test Engine

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PRM Certification - Exam IV: Case Studies Questions and Answers

Question 1

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

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Question 2

The "normal" credit loss profile of Washington Mutual was increased by which of the following?

Options:

A.

The general downturn in the economy of the US

B.

By lowering its own credit underwriting standards

C.

Acquisitions like Long Beach and Providian

D.

Catastrophic losses in its own credit card division

Question 3

According to the Group of 30 Report, option contracts:

Options:

A.

Always generate credit risk to both counterparties

B.

Create credit risk only for the buyer (due to default by the seller) provided the premium is due, and paid, at contract initiation

C.

Create no credit risk, since the buyer need not exercise the option

D.

Usually create credit risk only for the seller (to default by the buyer)