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8004 - PRM Certification - Exam IV: Case Studies; Standards: Governance - Best Practices and Ethics

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110

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PRMIA 8004 Questions Answers

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8004 Questions and Answers

Question # 1

Up until 2006, which of the following was not a primary driver for Washington Mutual's earning?

A.

Lending to consumers and small businesses.

B.

Deposit taking activities which generated net interest income.

C.

The provision of fee based services to its customers.

D.

Complex derivative trades based on volatility indices.

Question # 2

Which of the following are PRMIA Governance Principles?

I. Sufficiency of Key Resources and Process

II. State of the Art Risk Management Technology

III. Ongoing Education and Discernment

IV. Sufficiency of Key Competencies

A.

I, II and IV only

B.

I and II only

C.

I, III and IV only

D.

All of these are PRMIA Governance Principles

Question # 3

Barings failed to recognize that Nick Leeson's losses were increasing because:

A.

Leeson ran the front office

B.

The London office did not ask for any reports

C.

Leeson hid his trades in a suspense account

D.

The margin report sent to London did not show the true margin needs

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