Online Access Free ICBRR Practice Test

GammaBank estimates its monthly portfolio volatility at 5%.The portfolio's annual volatility is closest to which of the following?

• A.30%
• B.35%
• C.8%
• D.17%

Which statements correctly describe the features of using subscription databases for operational loss data analysis?
Subscription databases
I. Provide central data repositories and benchmarking services to their members.
II. Can provide insight into whether the losses in a firm reflect the usual losses in their industry.
III. Assist with mapping the events to the appropriate business lines, risk categories and causes.
IV.
Reflect only events that are interesting to the press and are reported in the press.

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

Which one of the following four relationships should be used to price equity forwards or futures?

• A.Equity forward or futures price = market equity price + (1 + risk-free rate - expected dividend rate)t
• B.Equity forward or futures price = market equity price + (1 + risk-free rate + expected dividend rate)t
• C.Equity forward or futures price = market equity price x (1 - risk-free rate - expected dividend rate)t
• D.Equity forward or futures price = market equity price x (1 + risk-free rate - expected dividend rate)t

Which one of the four following statements about a minimal loss threshold in operational loss data collection is incorrect?

• A.A company can have differing operational loss data collection and reporting thresholds for different departments.
• B.The operational loss data collection program has to capture all losses regardless of their size.
• C.Setting an operational loss data collection threshold depends on the risk appetite of the firm and regulatory requirements it needs to meet.
• D.The operational loss data collection program must include all material losses that are above minimal gross loss threshold.

Gamma Bank has a significant number of retail customers and finds its balance sheet shape and structure difficult to manage. Which one of the following characteristics of a bank with wide retail operations is INCORRECT?

• A.Banks with a wide retail base are typically driven by contractual obligations and not simply relationship considerations.
• B.The way retail customers behave in relation to the retail banking products they hold often results in the apparent contractual obligation of the parties providing a poor description of the actual nature of the obligations.
• C.Attracting and retaining customers often involves offering retail products whose features are different from wholesale market products.
• D.Pricing of retail products often has more to do with marketing considerations rather than prevailing market price.