Online Access Free 8009 Practice Test

Unlike the case at Barings Bank, National Australia Bank:

• A.Had a separation of duties between trading and back office
• B.Had a Board of Directors that was unaware of the true nature of trading activities
• C.Was not dealing in derivatives
• D.Had a risk management infrastructure that was credited with doing its' job well, despite the losses

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 and II only
• B.I, III and IV only
• C.I, II and IV only
• D.All of these are PRMIA Governance Principles

The financial intermediary services provided by Fannie Mae and Freddie Mac were designed to

• A.Buy mortgage-backed loans for banks and keep them all on their books, using them as collateral for the US government to borrow
• B.Compete directly with banks in selling mortgaged to would-be home owners
• C.Offer loans directly to the consumer
• D.Repackage mortgage loans made by banks and sell them on to investors as asset backed securities

The problems at Bankgesellschaft Berlin can best be characterized as failures related to:

• A.Both B and C
• B.Credit Risk
• C.Operational Risk
• D.Market Risk

A risk assessment report generated by a PRMIA member creates an apparent conflict of interest between the PRMIA standards and those of the client organization.
Of the following, which is the correct hierarchy to follow to resolve the conflict?
I. The decision of a superior within the organization
II. PRMIA Standards
III. Guidelines from the regulators in which the organization operates
IV. The laws of the country

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