Valentina Colonna - Psicologa

Keith Reed Keith Reed

0 Iscritto al Corso • 0 Corso completato

Biografia

Unparalleled 8011 Reliable Test Test & Leader in Qualification Exams & Perfect 8011: Credit and Counterparty Manager (CCRM) Certificate Exam

With our top quality 8011 exam preparation materials, you will get PRMIA certification and avail the excellent job opportunities available at the top ranking IT companies. Now you can easily pass 8011 Practice Test with the help of our valid learning materials and you will get a promotion in your company and work in a respectful and comfortable environment.

Our users are all over the world and they have completed their exams through the help of our 8011 study guide. As you can see the feedbacks from our loyal customers, all of them are grateful to our 8011 exam braindumps and become succussful people with the 8011 Certification. And what are you waiting for? Just selecting our 8011 learning materials, the next one to get an international certificate is you!

>> 8011 Reliable Test Test <<

Test PRMIA 8011 Questions Answers | 8011 Reliable Exam Guide

To get prepared for the Credit and Counterparty Manager (CCRM) Certificate Exam (8011) certification exam, applicants face a lot of trouble if the study material is not updated. They are using outdated materials resulting in failure and loss of money and time. So to solve all these problems, Real4test offers actual 8011 Questions to help candidates overcome all the obstacles and difficulties they face during 8011 examination preparation.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q33-Q38):

NEW QUESTION # 33
Which of the following statements is correct?

A. Dynamic simulations of liquidity needs require an assumption of counterparty risk remaining constant
B. Market liquidity risk is idiosyncratic while funding liquidity risk is not
C. Funding liquidity risks present themselves in the form of an adverse market impact on prices from a trade
D. Market liquidity risks present themselves in the form of higher bid offer spreads

Answer: D

Explanation:
Simulations of liquidity needs can be of various types: historical simulations, where the current positions are subjected to the kind of liquidity shocks experienced in the past; static simulations, where a static view of current positions, counterparty credit position, and the business is considered; and dynamic simulations where all factors are dynamically changed including counterparty credit standing, changes to the current portfolio and behavioural aspects of the business. Choice 'b' is incorrect as dynamic simulations require no such assumptions.
Liquidity risk is often thought of in terms of market liquidity risk and funding liquidity risk. Market liquidity risk relates to the the liquidity for a particular type of asset drying up. For example, during the 2007-2009 crisis a large number of corporate bonds and structured products became extremely illiquid. Market liquidity risk manifests itself in the form of higher bid offer spreads, higher pricde impact, and a reduction in the normal market size (ie, the 'normal' size of a trade for which a dealer quote is valid for). Therefore Choice 'd' is correct. Similarly, Choice 'a' is incorrect as adverse price impact results from market liquidity risk and not funding liquidity risk.
Market liquidity risk applies to the entire market and all its participants. It is not idiosyncratic. Therefore Choice 'c' is incorrect too. Funding liquidity risk on the other hand applies to an individual institution that is under liquidity stress in the sense of not being able to meet its obligations such as margin or collateral calls because of a lack of liquid assets. Thus it is funding liquidity that is idiosyncratic. Market liquidity risk often leads to funding liquidity risks materializing as firms are unable to get to the funds they were relying upon due to assets becoming illiquid.

NEW QUESTION # 34
Which of the following carry greater counterparty risk: a forward contract on a 10 year note, or a commercial paper carrying a AA credit rating with identical maturity and notional?

A. The forward contract has greater credit risk as its future gains are unknown
B. The commercial paper has greater credit risk as the entire notional is outstanding
C. Credit risk can not be compared in these terms
D. They both carry the same credit risk

Answer: B

Explanation:
The commercial paper has greater credit risk as the entire notional is outstanding. On the forward contract, only the replacement value of the contract, which normally would be a mere fraction of the notional, would be at risk.
Therefore Choice 'd' is the correct answer.

NEW QUESTION # 35
The sensitivity (delta) of a portfolio to a single point move in the value of the S&P500 is $100. If the current level of the S&P500 is 2000, and has a one day volatility of 1%, what is the value-at-risk for this portfolio at the 99% confidence and a horizon of 10 days? What is this method of calculating VaR called?

A. $14,736, parametric VaR
B. $4,660, parametric VaR
C. $4,660, Monte Carlo simulation VaR
D. $14,736, historical simulation VaR

Answer: A

Explanation:
If the current level of the S&P 500 is 2000, and a single day volatility is 1%, and the delta (ie change in portfolio value from a one point change) is $100, then the 1 day volatility for the portfolio in dollars is 2000 *
1% * $100 = $2,000.
At the 99% confidence level, the value of the inverse cumulative density function for the normal distribution is 2.33 (=NORMSINV(99%), in Excel). Therefore the 1 day VaR will be 2.33 * $2000 = $4,660. Extending it to 10 days using the square root of time rule, we get the 10 day VaR as equal to SQRT(10)*4660 = $14,736.
Since this method of calculating VaR relies upon a delta approximation of a risk factor (in this case the S&P500), it is the parametric approach to calculating VaR (the other methods being historical simulation, and Monte Carlo simulation).
The 2015 Handbook provides an excellent example of parametric (and other) VaR calculations in Chapter 3 of Volume III of Book 3. The spreadsheet used for the illustration can be downloadedfrom
http://www.prmia.org/prm-exam/handbook-resources.

NEW QUESTION # 36
Which of the following best describes Altman's Z-score

A. A regression of probability of survival against a given set of factors
B. A calculation of default probabilities
C. A numerical computation based upon accounting ratios
D. A standardized z based upon the normal distribution

Answer: C

Explanation:
Choice 'c' correctly describes Altman's z-score. All other choices are incorrect.

NEW QUESTION # 37
Which of the following is not an example of a risk concentration?

A. Origination of a large number of SIVs with exposures to the same asset class, where the SIVs are separate legal entities without recourse to the originator
B. Location of a portfolio's assets in a single country but spread across different industries
C. Material amounts of treasury obligations held as collateral provided by a single counterparty
D. Large combined positions in assets affected by different risk factors that are highly correlated

Answer: C

Explanation:
Choice 'd' represents a risk concentration due to excessive exposure to a single country, even though spread across different industries as the risk factors (economy, exchange rate, interest rate, political risk etc) are the same for all companies in the country.
Choice 'a' represents a risk concentration because even though the risk factors are different, they are highly correlated and therefore effectively behave as one. These undetected correlations proved to be fatal to many financial institutions during the credit crisis.
Choice 'b' represents a risk concentration as was borne out by the recent credit crisis. Large banks had to take over the obligations of SIVs they had created, even though the SIVs were separate legal entities with no legally enforceable recourse to the originating bank. This had to be done for moral and reputational reasons, and banks had to absorb the losses of these supposedly separate vehicles.
Choice 'c' does not represent a risk concentration, in fact it is not a risk at all because it refers to collateral held, even though the collateral may have been provided by the same counterparty. In this case the risk is to the party providing the collateral (in case the party holding the collateral rehypothecates or sells the collateral and is unable to return it).
Therefore Choice 'c' is the correct answer.
The BCBS document on stress testing provides a very nice articulation of risk concentration, and the relevant text from that document is produced verbatim here: [Risk concentration] may arise along different dimensions: single name concentrations; concentrations in regions or industries; concentrations in single risk factors; concentrations that are based on correlated risk factors that reflect subtler or more situation-specific factors, such as previously undetected correlations betweenmarket and credit risks, as well as between those risks and liquidity risk; concentrations in indirect exposures via posted collateral or hedge positions; concentrations in off-balance sheet exposure, contingent exposure, non-contractual obligations due to reputational reasons.

NEW QUESTION # 38
......

Currently more and more IT companies think highly of PRMIA certifications, IT workers are willing to clear exams (8011 valid practice exam online) and get certifications in order to improve their competitive power and obtain better opportunities. If you are ready to prepare for test questions and answers by PDF file or soft test engine in order to master better knowledge and skills, 8011 valid practice exam online will be a nice choice.

Test 8011 Questions Answers: https://www.real4test.com/8011_real-exam.html

Once you decide to buy, you will have right to free update your 8011 passleader dumps one-year, PRMIA 8011 Reliable Test Test In this competitive society, being good at something is able to take up a large advantage, especially in the IT industry, By adding all important points into 8011 practice materials with attached services supporting your access of the newest and trendiest knowledge, our 8011 practice materials are quite suitable for you right now, PRMIA 8011 Reliable Test Test This PDF file is compatible with the devices like PC, and smartphones.

Service Provider Services, Sorry, I don't have any real tips, Once you decide to buy, you will have right to free update your 8011 passleader dumps one-year.

In this competitive society, being good at something is able to take up a large advantage, especially in the IT industry, By adding all important points into 8011 practice materials with attached services supporting your access of the newest and trendiest knowledge, our 8011 practice materials are quite suitable for you right now.

Useful 8011 Reliable Test Test bring you Well-Prepared Test 8011 Questions Answers for PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam

This PDF file is compatible with the devices like PC, and smartphones, Purchase PRMIA 8011 study material right away to get started on the road to success in the real exam.

Our Blog

Keith Reed Keith Reed

Biografia