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8004 – PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

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Showing 7–9 of 10 questions

Question 7

According to the Group of 30 Report, option contracts:

Select an option, then click Submit answer.

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    Always generate credit risk to both counterparties
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    Create credit risk only for the buyer (due to default by the seller) provided the premium is due, and paid, at contract initiation
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    Create no credit risk, since the buyer need not exercise the option
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    Usually create credit risk only for the seller (to default by the buyer)
Question 8

The multi-dimensional risk problem at Northern Rock did not include which one of the combinations of the following?

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    LPHI Risk; Business Model; Solvency vs. Liquidity: and Deposit Protection
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    Corporate Governance; Moral Hazard; Role of Government; and Credit Risk
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    Deposit Protection; Moral Hazard; Business Model; and LPHI Risk
  • ○

    Business Model; Corporate Governance; Moral Hazard; and Deposit Protection
Question 9

Zheng Zhu wants to open a new PRMIA Chapter in Wuhan, China. He can do this if:

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    At least 100 members live within 50 miles
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    A local business sponsors the chapter
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    Approved by the Board of Directors
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    All of the above