BEST WAY TO ENSURE SUCCESS WITH PRMIA 8011 EXAM QUESTIONS

Best Way To Ensure Success With PRMIA 8011 Exam Questions

Best Way To Ensure Success With PRMIA 8011 Exam Questions

Blog Article

Tags: 8011 Valid Exam Practice, New 8011 Exam Papers, 8011 Test Engine Version, 8011 Detailed Study Plan, Test 8011 Prep

Maybe life is too dull; people are willing to pursue some fresh things. If you are tired of the comfortable life, come to learn our 8011 exam guide. Learning will enrich your life and change your views about the whole world. Also, lifelong learning is significant in modern society. Perhaps one day you will become a creative person through your constant learning of our 8011 Study Materials. And with our 8011 practice engine, your dream will come true.

PRMIA 8011 Credit and Counterparty Manager (CCRM) Certificate Exam is a globally recognized certification that validates a candidate's knowledge and skills in credit and counterparty risk management. 8011 exam focuses on concepts such as credit risk analysis, credit derivatives, and counterparty risk management, including stress testing, collateral management, and default management. The credit and counterparty risk management function has become increasingly important given the growing complexity of financial markets and the need for effective risk management programs.

PRMIA 8011 exam is made up of 80 multiple-choice questions, to be answered within a three-hour time limit. 8011 exam is computer-based and is accessible through various testing centres around the world. The passing mark for the exam is 60%, and candidates who successfully pass the exam will earn the prestigious PRMIA CCRM designation, marking them as experts in credit and counterparty risk management.

PRMIA 8011: Credit and Counterparty Manager (CCRM) Certificate exam is an excellent certification program for professionals who are interested in credit and counterparty risk management. It provides a comprehensive understanding of the principles and practices of credit risk management, as well as the various tools and techniques used to manage counterparty risk. Credit and Counterparty Manager (CCRM) Certificate Exam certification is recognized globally and is highly regarded in the financial services industry, making it an essential certification for professionals involved in credit and counterparty risk management.

>> 8011 Valid Exam Practice <<

New 8011 Exam Papers & 8011 Test Engine Version

The more you practice with our 8011 simulating exam, the more compelling you may feel. Even if you are lack of time, these 8011 practice materials can speed up your pace of review. Our 8011 guide questions are motivating materials especially suitable for those exam candidates who are eager to pass the exam with efficiency. And we can claim that with our 8011 study braindumps for 20 to 30 hours, you will be bound to pass the exam.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q201-Q206):

NEW QUESTION # 201
Which of the following statements is true?
I. It is sufficient to ensure that a parent entity has sufficient excess liquidity to cover a liquidity shortfall for a subsidiary.
II. If a parent entity has a shortfall of liquidity, it can always rely upon any excess liquidity that its foreign subsidiaries might have.
III. Wholesale funding sources for a bank refer to stable sources of funding provided by the central bank.
IV. Funding diversification refers to diversification of both funding sources and funding tenors.

  • A. I and III
  • B. III and IV
  • C. I and IV
  • D. IV

Answer: D

Explanation:
It is not generally sufficient to ensure the adequacy of liquidity across a group - ie it is not appropriate to just add up the sources and needs for liquidity across multiple entities in a group. This is because there can be restrictions on transferring liquidity between entities, particularly when the entities are located across borders.
In cases where transfers of liquidity are permitted, there may be settlement delays in transferring funds from one entity to another. Therefore both statements I and II are incorrect.
Wholesale funding sources refers to the temporary interbank funding sources that need to be rolled over on very short intervals, often as short as overnight. These are not stable sources for long term funding. Statement III is therefore false.
Statement IV is correct as funding diversification refers to diversification of both funding sources and the duration for which the amounts are borrowed, ie tenor diversity.
Statement IV is the only correct statement and therefore Choice 'a' is the correct answer.


NEW QUESTION # 202
Which of the following should be included when calculating the Gross Income indicator used to calculate operational risk capital under the basic indicator and standardized approaches under Basel II?

  • A. Net non-interest income
  • B. Fees paid to outsourcing service proviers
  • C. Operating expenses
  • D. Insurance income

Answer: A

Explanation:
Gross income is defined by Basel II (see para 650 of the Basel standard) as net interest income plusnet non- interest income. It is intended that this measure should: (i) be gross of any provisions (e.g. for unpaid interest); (ii) be gross of operating expenses, including fees paid to outsourcing service providers; (iii) exclude realised profits/losses from the sale of securities in the banking book; and (iv) exclude extraordinary or irregular items as well as income derived from insurance.
What this means is that gross income is calculated without deducting any provisions or operating expenses from net interest plus non-interest income; and does not include any realised profits or losses from the sale of securities in the banking book, and also does not include any extraordinary or irregular item or insurance income.
Therefore operating expenses are to be not to be deducted for the purposes of calculating gross income, and neither are any provisions. Profits and losses from the sale of banking book securities are not considered part of gross income, and so isn't any income from insurance or extraordinary items.
Of the listed choices, only net non-interest income needs to be included for gross income calculations, and the others are to be excluded. Therefore Choice 'd' is the correct answer. Try to remember the components of gross income from the definition above because in the exam the question may be phrased differently.


NEW QUESTION # 203
A stock that follows the Weiner process has its future price determined by:

  • A. its standard deviation and past technical movements
  • B. its expected return and standard deviation
  • C. its current price, expected return and standard deviation
  • D. its expected return alone

Answer: C

Explanation:
The change in the price of a security that follows a Weiner process is determined by its standard deviation and expected return. To get the price itself, we need to add this change in price to the current price. Therefore the future price in a Weiner process is determined by all three of current price, expected return and standard deviation.


NEW QUESTION # 204
The standard error of a Monte Carlo simulation is:

  • A. None of the above
  • B. Zero
  • C. Proportional to the inverse of the square root of the sample size
  • D. The same as that for a lognormal distribution

Answer: C

Explanation:
When we do a Monte Carlo simulation, the statistic we obtain (eg, the expected price) is an estimate of the real variable. The difference between the real value (which would be what we would get if we had access to the entire population) and that estimated by the Monte Carlo simulation is measured by the 'standard error', which is the standard deviation of the difference between the 'real' value and the simulated value (ie, the 'error').
As we increase the number of draws in a Monte Carlo simulation, the closer our estimate will be to the true value of the variable we are trying to estimate. But increasing the sample size does not reduce the error in a linear way, ie doubling the sample size does not halve the error, but reduces it by the inverse of the square root of the sample size. So if we have a sample size of 1000, going up to a sample size of 100,000 will reduce the standard error by a factor of 10 (and not 100), ie, SQRT(1/100) = 1/10. In other words, standard error is proportional to 1/#N, where N is the sample size.
Therefore Choice 'c' is correct and the others are incorrect.


NEW QUESTION # 205
Pick underlying risk factors for a position in an equity index option:
I. Spot value for the index
II. Risk free interest rate
III. Volatility of the underlying
IV. Strike price for the option

  • A. II and II
  • B. All of the above
  • C. I, II and III
  • D. I and IV

Answer: C

Explanation:
The index option is affected by the spot value for the underlying index, as also the risk free interest rate, or the zero rate for the duration of the option. It is also affected by the volatility of the underlying. The 'strike price' is set and is fixed at the time the option is purchased, and therefore is not a risk factor.
Therefore other than IV, all other choices are valid risk factors that underlie an equity index option.
Other instruments may have other risk factors - for example, a long forex position will have the spot exchange rate as the only risk factor.


NEW QUESTION # 206
......

Our CertkingdomPDF 8011 exam certification training materials are real with a reasonable price. After you choose our 8011 exam dumps, we will also provide one year free renewal service. Before you buy CertkingdomPDF 8011 certification training materials, you can download 8011 free demo and answers on probation. If you fail the 8011 exam certification or there are any quality problem of 8011 exam certification training materials, we guarantee that we will give a full refund immediately.

New 8011 Exam Papers: https://www.certkingdompdf.com/8011-latest-certkingdom-dumps.html

Report this page