[Jul 11, 2023] 2016-FRR Exam Dumps - 100% Marks In 2016-FRR Exam!
Exam Dumps Use Real Financial Risk and Regulation Dumps With 345 Questions!
GARP 2016-FRR (Financial Risk and Regulation) certification exam is designed to test professionals' knowledge and expertise in the field of financial risk management and regulatory compliance. Financial Risk and Regulation (FRR) Series certification is offered by the Global Association of Risk Professionals (GARP), which is a leading professional association dedicated to the advancement of the risk management profession worldwide. The GARP 2016-FRR certification is a globally recognized credential that demonstrates an individual's proficiency in the areas of risk management, regulatory compliance, and financial modeling.
The FRR Series is designed for risk management professionals who are interested in specializing in the regulation and compliance aspects of risk management. Financial Risk and Regulation (FRR) Series certification exam covers a wide range of topics, including financial institutions and regulatory bodies, financial instruments, risk management frameworks, and financial markets. The FRR Series is recognized by many employers around the world as a valuable credential for risk management professionals.
Preparing for the FRR exams requires a significant amount of time and effort. GARP provides study materials and resources, including textbooks, online courses, and practice exams. Many candidates also choose to enroll in a review course, which can help them better understand the material and prepare for the exam. It is important to note that the FRR exams are challenging, and candidates should be prepared to dedicate significant time and effort to studying.
NEW QUESTION # 69
Which one of the following four statements correctly defines a typical carry trade?
- A. A bank borrows funds in a high-interest currency and places the funds in a long-term low volatility
investment vehicle. - B. A bank borrows funds in a low-interest currency and places the funds on deposit in a high-interest
currency. - C. A bank borrows funds in a low-interest currency, accumulates reserves, and lends in another
low-interest currency. - D. A bank borrows funds in a high-interest currency and invests the funds into high-yield emerging market
debt.
Answer: B
NEW QUESTION # 70
As Japan ___ its budget deficits and ___ its dependence on debt, the Japanese currency, JPY, would ___ in
value against other currencies.
- A. Reduces, reduces, appreciate
- B. Reduces, reduces, depreciate
- C. Reduces, increases, depreciate
- D. Increases, reduces, appreciate
Answer: A
NEW QUESTION # 71
Which one of the four following statements about a minimal loss threshold in operational loss data collection
is incorrect?
- A. The operational loss data collection program has to capture all losses regardless of their size.
- B. The operational loss data collection program must include all material losses that are above minimal
gross loss threshold. - C. Setting an operational loss data collection threshold depends on the risk appetite of the firm and
regulatory requirements it needs to meet. - D. A company can have differing operational loss data collection and reporting thresholds for different
departments.
Answer: A
NEW QUESTION # 72
Which one of the following four statements regarding commodity exchanges is INCORRECT?
- A. Banks trade in OTC contracts primarily to serve clients and facilitate client hedging and lending.
- B. Customers rarely trade physical commodities with banks.
- C. Commodity markets are mot liquid than debt markets.
- D. Banks have no natural direct exposure to commodities.
Answer: C
NEW QUESTION # 73
BetaFin, a financial services firm, does not have retail branches, but has fixed income, equity, and asset
management divisions. Which one of the four following risk and control self-assessment (RCSA) methods fits
the firm's operational risk framework the best?
- A. RCSA questionnaire approach
- B. RCSA scenario analysis approach
- C. RCSA workshop approach
- D. RCSA loss data approach
Answer: C
NEW QUESTION # 74
When the cost of gold is $1,100 per bullion and the 3-month forward contract trades at $900, a commodity
trader seeks out arbitrage opportunities in this relationship. To capitalize on any arbitrage opportunities, the
trader could implement which one of the following four strategies?
- A. Short-sell physical gold and take a long position in the futures contract
- B. Take long positions in both physical gold and futures contract
- C. Short-sell both physical gold and futures contract
- D. Take a long position in physical gold and short-sell the futures contract
Answer: A
NEW QUESTION # 75
Which one of the four following statements describes a specific characteristic of risk and control
self-assessments (RCSA) which distinguishes it from both control assessments and risk and control
assessments?
- A. RCSA is subjective by nature.
- B. RCSA tests a control's effectiveness against set criteria and issues a pass/fail or level of effectiveness
score. - C. RCSA is conducted by a third party, perhaps audit, compliance or the Sarbanes-Oxley team.
- D. RCSA includes a risk assessment in addition to a control assessment.
Answer: A
NEW QUESTION # 76
In the United States, during the second quarter of 2009, transactions in foreign exchange derivative contracts
comprised approximately what proportion of all types of derivative transactions between financial institutions?
- A. 7%
- B. 43%
- C. 2%
- D. 25%
Answer: A
NEW QUESTION # 77
Which one of the four following statements about drawdowns is correct?
- A. Drawdown measures the aggregate decline in market values of assets and positions due to a shock.
- B. Drawdown estimates the effect on bank's liabilities when the bank's credit rating is cut.
- C. Drawdown quantifies the peak-to-trough decline of an investment over a known time period.
- D. Drawdown calculates significant losses in a particular business or a book.
Answer: C
NEW QUESTION # 78
A bank customer chooses a mortgage with low initial payments and payments that increase over time because
the customer knows that she will have trouble making payments in the early years of the loan. The bank makes
this type of mortgage with the same default assumptions uses for ordinary mortgages, thus underestimating the
risk of default and becoming exposed to:
- A. Sampling bias
- B. Moral hazard
- C. Adverse selection
- D. Banking speculation
Answer: C
NEW QUESTION # 79
What is the order in which creditors and shareholders get repaid in the event of a bank liquidation?
- A. Depositors, debt holders, shareholders.
- B. Depositors, shareholders, debt holders.
- C. Depositors, shareholders, depositors.
- D. Debt holders, depositors, shareholders.
Answer: A
NEW QUESTION # 80
Which one of the following four statements correctly defines chooser options?
- A. These options represent a variation of the plain vanilla option where the underlying asset is a basket of
currencies. - B. These options pay an amount equal to the power of the value of the underlying asset above the strike
price. - C. These options give the holder the right to exchange one asset for another.
- D. The owner of these options decides if the option is a call or put option only when a predetermined date
is reached.
Answer: D
NEW QUESTION # 81
To hedge equity exposure without buying or selling shares of stock or otherwise rebalancing the portfolio, a
risk manager could initiate
- A. A short total return swap position.
- B. A short debt-for-equity swap.
- C. A long total return swap position.
- D. A long debt-for-equity swap.
Answer: A
NEW QUESTION # 82
Which one of the four following statements about technology systems for managing operational risk event
data is incorrect?
- A. The implementation of a new operational risk event loss database has to incorporate an analysis of the
advantages and disadvantages of external systems. - B. Operational risk event databases are independent elements of the operational risk management
framework. - C. Operational risk loss event data collection software can be internally developed.
- D. Operational risk event databases are always integrated with the other components of the operational risk
management program.
Answer: D
NEW QUESTION # 83
Which one of the four following non-statistical risk measures are typically not used to quantify market risk?
- A. Option sensitivities
- B. Convexity
- C. Basis point values
- D. Net closed positions
Answer: D
NEW QUESTION # 84
Which one of the following four options correctly identifies the core difference between bonds and loans?
- A. These instruments cannot be used to estimate credit capital under provisions of the Basel II Accord.
- B. These instruments are subject to different credit counterparty regulations.
- C. These instruments receive a different legal treatment.
- D. These instruments have different pricing drivers.
Answer: C
NEW QUESTION # 85
Which one of the following four regulatory drivers for operational risk management includes risk and control
requirements for financial statements in the United States?
- A. The Markets in Financial Instruments Directive
- B. Basel II Accord
- C. Solvency II
- D. The Sarbanes-Oxley Act
Answer: D
NEW QUESTION # 86
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