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2016-FRR Exam Questions Tutorials

Page: 11 / 28
Total 387 questions

Financial Risk and Regulation (FRR) Series Questions and Answers

Question 41

Foreign exchange rates are determined by various factors. Considering the drivers of exchange rates, which one of the following changes would most likely strengthen the value of the USD against other foreign currencies?

Options:

A.

The expected US inflation rate increases

B.

The global demand for US products decreases

C.

The economic performance in the US weakens

D.

The US current account surplus increases

Question 42

Which one of the following four models is typically used to grade the obligations of small- and medium-size enterprises?

Options:

A.

Causal models

B.

Historical frequency models

C.

Credit scoring models

D.

Credit rating models

Question 43

In the United States, Which one of the following four options represents the largest component of securitized debt?

Options:

A.

Education loans

B.

Credit card loans

C.

Real estate loans

D.

Lines of credit

Question 44

Which one of the following four options correctly identifies the core difference between bonds and loans?

Options:

A.

These instruments receive a different legal treatment.

B.

These instruments have different pricing drivers.

C.

These instruments cannot be used to estimate credit capital under provisions of the Basel II Accord.

D.

These instruments are subject to different credit counterparty regulations.

Page: 11 / 28
Total 387 questions