Free GARP 2016-FRR Exam Questions
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GARP 2016-FRR Exam Questions
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Provided By: GARP
- Exam: Financial Risk and Regulation (FRR) Series
- Certification: GARP Certification
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Total Questions: 345
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Updated On: Nov 11, 2024
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Rated: 4.9 |
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Online Users: 690
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Question 1
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For a bank a 1-year VaR of USD 10 million at 95% confidence level means that:
Answer: B
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Question 2
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When trading exotic options, one needs to consider the following risks:I. Spot foreign exchange risksII. Forward foreign exchange risksIII. Plain vanilla options risksIV. Option-specific risks
Answer: D
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Question 3
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Which one of the following four statements about preferred shares is INCORRECT?
Answer: B
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Question 4
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A bank customer expecting to pay its Brazilian supplier BRL 100 million asks Alpha Bank tobuy Australian dollars and sell Brazilian reals. Alpha bank does not hold reals so it asks fora quote to buy Brazilian reals in the market. The market rate is 100. The bank quotes aselling rate of 101 to its customer and sells the reals at this quoted price. Then the bankimmediately buys the real at the market rate and completes foreign exchange matchedtransaction. What is the financial impact of this transaction for Alpha bank?
Answer: A
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Question 5
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An endowment asset manager with a focus on long/short equity strategies is evaluating therisks of an equity portfolio. Which of the following risk types does the asset manager needto consider when evaluating her diversified equity portfolio?I. Company-specific projected earnings and earnings riskII. Aggregate earnings expectationsIII. Market liquidityIV. Individual asset volatility
Answer: C
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