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1. The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:
A) All PRMIA Fellow Members
B) A two-thirds affirmative vote of all members
C) The Blue Ribbon Advisory Panel
D) The Regional Directors
2. The early 2003 trading strategy of China Aviation oil was
A) to buy calls and sell puts
B) to sell puts and buy calls
C) to sell calls and buy puts
D) to buy puts and sell calls
3. Which of the following best characterizes the problems that developed at Bankgesellschaft Berlin?
A) Banking is a "for-profit" business, not a means of fulfilling political goals.
B) A company culture where profits may justify "excesses."
C) Volume growth at the expense of margin.
D) Excessive reliance on volatile trading income.
4. A risk manager finds that a client is engaged in a practice that looks like money laundering.
According to the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct), the risk manager should:
A) Respect the client's confidentiality as that takes precedence
B) Approach the client about the concern, regardless of what their reaction might be
C) Report this conduct to their immediate supervisor
D) Report the findings immediately to authorities
5. Which of the following regarding Orange County is FALSE?
A) Citron's losses were eventually exposed by massive margin calls
B) Bob Citron tried to "ride the yield curve"
C) Bob Citron heavily leveraged his positions using repos
D) Bob Citron engaged in risky strategies to benefit personally
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: D |
Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition
PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
PRM Certification - Exam II: Mathematical Foundations of Risk Measurement
Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
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