15/1/2020 Score Report: FRM QUIZ 01 11-01-2020

Muchas gracias por realizar el Quiz

Su Calificación

Nombre Joao Vidarte

Calificación 50 / 100 Puntos ( 50% )

Contestó correctamente 5

Contestó incorrectamente 5

Correo electrónico vidartejoao@gmail.com

Puntaje minimo para aprobar 75 %

Tiempo necesario 15 mins 50 secs

Sus Resultadoṣ
Reprobado

Su Informe

Incorrecta

1)
Tail risk techniques are dealt byWhich one do you like?
1. Probably of Default Theory.Option 3

2. standard deviation.Option 4

3. Extreme Value TheoryOption (Respuesta correcta)

4. VaR Theory.Option 2 (Su Respuesta)

Correcta

2)
Operational risk includes
1. legal risk. (Su Respuesta)
2. currency risk.

3. business risk.

4. reputation risk.

Correcta

3)
EL for a loan is based on
1. loss given default (LGD).

2. exposure at default (EAD).

3. probability of default (PD).

4. all of the above (Su Respuesta)

Explicación
because EL = EAD X LGD X PO

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15/1/2020 Score Report: FRM QUIZ 01 11-01-2020

Incorrecta

4)
Which of various Greek measures can be added together

across different currencies?

1. Gamma (Su Respuesta)
2. Nene of the above (Respuesta correcta)
3. Theta

4. Delta

Explicación
because Greeks for example do not imply the same level of risk across markets (e.g., delta in
foreign exchange versus commodity markets).

Correcta

5)
Risk capacity refers to the total amount of risk
1. the amount that it would be happy to bear at any one time.

2. the firm is taking today.

3. the firm could bear without becoming insolvent. (Su Respuesta)

4. none of the above

Correcta

6)
There is an agreement among experts that all airlines ought to be hedging their jet fuel price risk.
1. True

2. False (Su Respuesta)

Explicación
False, rnost airlines hedge sorne of their price risk, but sorne prefer to reta in it ali. The
naysayers cite the expense of hedging prograrns and fear that they will lock in jet fuel prices at
a high point in the market, just before a steep price fall.

Incorrecta

7)
Minimizing counterparty credit exposure can be obtained through the use of
1. margin requirements

2. all of the above. (Respuesta correcta)

3. netting arrangements. (Su Respuesta)

4. it cannot be minimized at all.

Incorrecta

8)
Which of the following was not an aim of the Dodd-Frank Act?
1. Stress testing and scenario analysis

2. Verifying the accuracy of financia! reports (Respuesta correcta)

3. Protecting consumers

4. Living Will and resolution plan (Su Respuesta)

Explicación
Accuracy of financia! reports was an aim of SarbanesOxley, not Dodd-Frank.

Correcta

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15/1/2020 Score Report: FRM QUIZ 01 11-01-2020
9)
Which one do you like?
1. The chief executive officer (CEO) only

2. CEO and CFO only (Su Respuesta)

3. The chief financia! officer (CFO) only

4. The chief risk officer (CRO) only

Explicación
SOX specifically requires the CEO and CFO to affirm the accuracy of all financia! disclosures.

Incorrecta

10)
After establishing a risk limit, a bank should plan to maintain a risk exposure level just below the limit during the normal
course of business.
1. False. (Su Respuesta)
2. True. (Respuesta correcta)

Explicación
False, because the bank should operate well below its risk limits during the normal course of
business

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