PRMIA Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP – 2015 Edition Exam Practice Test

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Total 362 questions

Question 1

The degree distribution of the nodes of the financial network is:



Answer : D

Question 2

Which of the following statements are true in relation to the current state of the financial network?

I,Interconnectivity between countries has reduced while that between institutions in the same country has increased significantly

II,The degrees of separation between institutions has gone up

III,The average path length connecting any two given institutions has shrunk

IV. Knife-edge dynamics imply that systemic risk arises from the financial system flipping from risk sharing to risk spreading



Answer : C

Question 3

Which of the following correctly describes survivorship bias:



Answer : C

Question 4

The systemic manifestation of the liquidity crisis during the current credit crisis took many forms. Which of the following is not one of those forms?



Answer : A

Question 5

Which of the following is not a consideration in determining the liquidity needs of a firm (as opposed to determining the time horizon for liquidity risk)?



Answer : A

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Total 362 questions