QUIZ PROFESSIONAL GARP - POSITIVE 2016-FRR FEEDBACK

Quiz Professional GARP - Positive 2016-FRR Feedback

Quiz Professional GARP - Positive 2016-FRR Feedback

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Tags: Positive 2016-FRR Feedback, 2016-FRR Certification Dumps, Latest 2016-FRR Braindumps Sheet, 2016-FRR Reliable Real Test, 2016-FRR Advanced Testing Engine

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As one of the hot exam of our website, GARP dumps pdf has a high pass rate which reach to 85%. According to our customer's feedback, our 2016-FRR vce braindumps covers mostly the same topics as included in the real exam. So if you practice our 2016-FRR Test Questions seriously and review test answers, pass exam will be absolute.

GARP 2016-FRR Exam covers a wide range of topics related to financial risk management and regulation, including risk assessment and measurement, financial derivatives, credit and market risk, liquidity and funding risk, operational risk, and regulatory frameworks. 2016-FRR exam is divided into two parts: Part I (Foundations of Risk Management) and Part II (Risk and Regulation in Financial Markets), each consisting of 80 multiple-choice questions. Candidates are required to pass both parts of the exam to become certified.

Get to know about the requirements for taking GARP 2016-FRR?

The requirements to take the GARP FRR Certification are not strict because it is an open examination. Variable requirements for the 2016-FRR are by the organizer and the region. Chapters are structured according to the country you are studying. Message the organizer email before submitting the application for GARP 2016-FRR Certification, If edits are required.

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Prepare for the 2016-FRR Exam with 2Pass4sure Test Engine

As we all know, time for preparing a exam is quite tight. Once you have signed up for the exam, you need to prepare. Therefore improving the efficiency is quite necessary. Our 2016-FRR training materials include the main knowledge point of the exam, which will help you to know the main knowledge. Besides the professionals check the 2016-FRR at time, it can ensure the accuracy of the answers. Therefore, please make it easy to use the 2016-FRR training materials freely.

The FRR Series Certification Exam offered by GARP is a comprehensive and rigorous assessment of the skills and knowledge required to effectively manage financial risks. Financial Risk and Regulation (FRR) Series certification is globally recognized and respected in the industry, providing professionals with a valuable asset for career advancement. With the increasing importance of risk management in the financial industry, obtaining the FRR Series Certification is a wise investment in one's career.

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q297-Q302):

NEW QUESTION # 297
A portfolio manager is interested in computing risk measures for his bond investment portfolio. Which of the
following measures the sensitivity of duration to interest rates?

  • A. Convexity.
  • B. Modified duration.
  • C. Credit spread.
  • D. Yield curve

Answer: A


NEW QUESTION # 298
To estimate a partial change in option price, a risk manager will use the following formula:

  • A. Partial change in option price = Delta x (1+ Change in underlying price)
  • B. Partial change in option price = Delta x Gamma x (1+ Change in underlying price)
  • C. Partial change in option price = Delta x Change in underlying price
  • D. Partial change in option price = Delta x Gamma x Change in underlying price

Answer: C


NEW QUESTION # 299
A bank customer expecting to pay its Brazilian supplier BRL 100 million asks Alpha Bank to buy Australian dollars and sell Brazilian reals. Alpha bank does not hold reals so it asks for a quote to buy Brazilian reals in the market. The market rate is 100. The bank quotes a selling rate of 101 to its customer and sells the real at this quoted price. Then the bank immediately buys the real at the market rate and completes foreign exchange matched transaction. What is the impact of this transaction on the bank's risk profile?

  • A. This transaction eliminates operational risk.
  • B. This transaction eliminates counterparty risk.
  • C. This transaction eliminates market risk.
  • D. This transaction eliminates credit risk.

Answer: C

Explanation:
When Alpha Bank completes a foreign exchange matched transaction, it buys Brazilian reals in the market immediately after selling them to the customer, thus matching the position. This process eliminates market risk as the bank is no longer exposed to fluctuations in the exchange rate between the Australian dollar and the Brazilian real.
* Customer Transaction:
* Alpha Bank sells BRL 100 million to the customer and receives AUD 1,010,000.
* Market Transaction:
* Alpha Bank immediately buys BRL 100 million in the market at the rate of 100, paying AUD
1,000,000.
By matching its position, the bank ensures that it is not exposed to changes in the exchange rate, thereby eliminating market risk.
ReferencesSource: How Finance Works


NEW QUESTION # 300
According to the principles of the Basel II Accord, the implementation and relative weights of the elements of
the operational risk framework depend on:
I. The culture of the financial institution
II. Regulatory drivers
III. Business drivers
IV. The bank's reporting currency

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

Answer: A


NEW QUESTION # 301
Which of the following statements defines Value-at-risk (VaR)?

  • A. VaR is the maximum likely loss on a financial instrument or a portfolio of financial instruments over a given time period with a given degree of probabilistic confidence.
  • B. VaR is the maximum of past losses over a given period of time.
  • C. VaR is the worst possible loss on a financial instrument or a portfolio of financial instruments over a given time period.
  • D. VaR is the minimum likely loss on a financial instrument or a portfolio of financial instruments with a given degree of probabilistic confidence.

Answer: A

Explanation:
Value-at-Risk (VaR) is a statistical measure used to assess the risk of loss on a specific portfolio of financial assets. It estimates the maximum potential loss with a given confidence level over a defined period.
* Maximum Likely Loss: VaR calculates the worst expected loss under normal market conditions at a specific confidence level.
* Time Period: VaR is assessed over a specified time horizon, such as a day, week, or month.
* Confidence Level: VaR is defined at a certain confidence level, typically 95% or 99%. This means there is a 95% (or 99%) probability that the loss will not exceed the VaR estimate.
For instance, a daily VaR of $1 million at a 99% confidence level implies that there is only a 1% chance that the portfolio will lose more than $1 million in a day.
References
* How Finance Works.pdf, p. 201


NEW QUESTION # 302
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