GARP 2016-FRR Financial Risk and Regulation (FRR) Series Exam Practice Test

The technique of using interest rate swap positions to reduce the effect of the variability of interest rates on net interest income is known as:

To estimate the forward price of oil, a commodity trader would most likely use the following pricing relationship:

To safeguard its capital and obtain insurance if the borrowers cannot repay their loans, Gamma Bank accepts financial collateral to manage its credit risk and mitigate the effect of the borrowers' defaults. Gamma Bank will typically accept all of the following instruments as financial collateral EXCEPT?

All of the following performance statistics typically benefit country's creditworthiness EXCEPT:

Counterparty credit risk assessment differs from traditional credit risk assessment in all of the following features EXCEPT:

Altman's Z-score incorporates all the following variables that are predictive of bankruptcy EXCEPT:

Mega Bank has $100 million in deposits on which it pays 3% interest, and $20 million in equity on which it pays no interest. The loan portfolio of $120 million earns an average rate of 10%. If the rates remain the same, what is the net interest income of Mega Bank?