{"id":37456,"date":"2022-03-26T02:44:25","date_gmt":"2022-03-26T02:44:25","guid":{"rendered":"https:\/\/www.dumpsbase.com\/freedumps\/?p=37456"},"modified":"2022-03-26T02:44:29","modified_gmt":"2022-03-26T02:44:29","slug":"new-operational-risk-manager-orm-exam-8010-dumps-questions-2022","status":"publish","type":"post","link":"https:\/\/www.dumpsbase.com\/freedumps\/new-operational-risk-manager-orm-exam-8010-dumps-questions-2022.html","title":{"rendered":"New Operational Risk Manager (ORM) Exam 8010 Dumps Questions [2022]"},"content":{"rendered":"\n<p>It is great to provide new 8010 dumps questions to help you prepare for Operational Risk Manager (ORM) Exam well. New 8010 dumps containing 240 practice exam questions and answers will help by gaining a better understanding of the PRMIA 8010 exam. Then you can practice all 8010 dumps questions well with DumpsBase pdf file and software. This is the perfect chance to make the right choice of 8010 dumps questions to test and answers to get confirmation of your PRMIA 8010 exam on the first try.<\/p>\n<h2>Real 8010 free dumps prior to purchasing the PRMIA 8010 Dumps Questions<\/h2>\n<script>\n\t  window.fbAsyncInit = function() {\n\t    FB.init({\n\t      appId            : '622169541470367',\n\t      autoLogAppEvents : true,\n\t      xfbml            : true,\n\t      version          : 'v3.1'\n\t    });\n\t  };\n\t\n\t  (function(d, s, id){\n\t     var js, fjs = d.getElementsByTagName(s)[0];\n\t     if (d.getElementById(id)) {return;}\n\t     js = d.createElement(s); js.id = id;\n\t     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n\t     fjs.parentNode.insertBefore(js, fjs);\n\t   }(document, 'script', 'facebook-jssdk'));\n\t<\/script><script type=\"text\/javascript\" >\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \nif(!window.jQuery) alert(\"The important jQuery library is not properly loaded in your site. Your WordPress theme is probably missing the essential wp_head() call. You can switch to another theme and you will see that the plugin works fine and this notice disappears. If you are still not sure what to do you can contact us for help.\");\n});\n<\/script>  \n  \n<div  id=\"watupro_quiz\" class=\"quiz-area single-page-quiz\">\n<p id=\"submittingExam6181\" style=\"display:none;text-align:center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\"><\/p>\n\n<div class=\"watupro-exam-description\" id=\"description-quiz-6181\"><\/div>\n\n<form action=\"\" method=\"post\" class=\"quiz-form\" id=\"quiz-6181\"  enctype=\"multipart\/form-data\" >\n<div class='watu-question ' id='question-1' style=';'><div id='questionWrap-1'  class='   watupro-question-id-214437'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>1. <\/span>Which of the following statements are correct? <br \/>\r<br>I. A reliance upon conditional probabilities and a-priori views of probabilities is called the 'frequentist' view <br \/>\r<br>II. Knightian uncertainty refers to things that might happen but for which probabilities cannot be evaluated <br \/>\r<br>III. Risk mitigation and risk elimination are approaches to reacting to identified risks <br \/>\r<br>IV. Confidence accounting is a reference to the accounting frauds that were seen in the past decadeas a reflection of failed governance processes<\/div><input type='hidden' name='question_id[]' id='qID_1' value='214437' \/><input type='hidden' id='answerType214437' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214437[]' id='answer-id-854869' class='answer   answerof-214437 ' value='854869'   \/><label for='answer-id-854869' id='answer-label-854869' class=' answer'><span>II, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214437[]' id='answer-id-854870' class='answer   answerof-214437 ' value='854870'   \/><label for='answer-id-854870' id='answer-label-854870' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214437[]' id='answer-id-854871' class='answer   answerof-214437 ' value='854871'   \/><label for='answer-id-854871' id='answer-label-854871' class=' answer'><span>I and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214437[]' id='answer-id-854872' class='answer   answerof-214437 ' value='854872'   \/><label for='answer-id-854872' id='answer-label-854872' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-2' style=';'><div id='questionWrap-2'  class='   watupro-question-id-214438'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>2. <\/span>Under the standardized approach to calculating operational risk capital under Basel II, negative regulatory capital charges for any of the business units:<\/div><input type='hidden' name='question_id[]' id='qID_2' value='214438' \/><input type='hidden' id='answerType214438' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214438[]' id='answer-id-854873' class='answer   answerof-214438 ' value='854873'   \/><label for='answer-id-854873' id='answer-label-854873' class=' answer'><span>Should be ignored completely<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214438[]' id='answer-id-854874' class='answer   answerof-214438 ' value='854874'   \/><label for='answer-id-854874' id='answer-label-854874' class=' answer'><span>Should be offset against positive capital charges from other business units<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214438[]' id='answer-id-854875' class='answer   answerof-214438 ' value='854875'   \/><label for='answer-id-854875' id='answer-label-854875' class=' answer'><span>Should be included after ignoring the negative sign<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214438[]' id='answer-id-854876' class='answer   answerof-214438 ' value='854876'   \/><label for='answer-id-854876' id='answer-label-854876' class=' answer'><span>Should be excluded from capital calculations<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-3' style=';'><div id='questionWrap-3'  class='   watupro-question-id-214439'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>3. <\/span>Credit exposure for derivatives is measured using<\/div><input type='hidden' name='question_id[]' id='qID_3' value='214439' \/><input type='hidden' id='answerType214439' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214439[]' id='answer-id-854877' class='answer   answerof-214439 ' value='854877'   \/><label for='answer-id-854877' id='answer-label-854877' class=' answer'><span>Current replacement value<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214439[]' id='answer-id-854878' class='answer   answerof-214439 ' value='854878'   \/><label for='answer-id-854878' id='answer-label-854878' class=' answer'><span>Notional value of the derivative<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214439[]' id='answer-id-854879' class='answer   answerof-214439 ' value='854879'   \/><label for='answer-id-854879' id='answer-label-854879' class=' answer'><span>Forward looking exposure profile of the derivative<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214439[]' id='answer-id-854880' class='answer   answerof-214439 ' value='854880'   \/><label for='answer-id-854880' id='answer-label-854880' class=' answer'><span>Standard normal distribution<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-4' style=';'><div id='questionWrap-4'  class='   watupro-question-id-214440'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>4. <\/span>Which of the following are valid approaches for extreme value analysis given a dataset: <br \/>\r<br>I. The Block Maxima approach <br \/>\r<br>II. Least squares approach <br \/>\r<br>III. Maximum likelihood approach <br \/>\r<br>IV. Peak-over-thresholds approach<\/div><input type='hidden' name='question_id[]' id='qID_4' value='214440' \/><input type='hidden' id='answerType214440' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214440[]' id='answer-id-854881' class='answer   answerof-214440 ' value='854881'   \/><label for='answer-id-854881' id='answer-label-854881' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214440[]' id='answer-id-854882' class='answer   answerof-214440 ' value='854882'   \/><label for='answer-id-854882' id='answer-label-854882' class=' answer'><span>I, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214440[]' id='answer-id-854883' class='answer   answerof-214440 ' value='854883'   \/><label for='answer-id-854883' id='answer-label-854883' class=' answer'><span>I and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214440[]' id='answer-id-854884' class='answer   answerof-214440 ' value='854884'   \/><label for='answer-id-854884' id='answer-label-854884' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-5' style=';'><div id='questionWrap-5'  class='   watupro-question-id-214441'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>5. <\/span>Which of the following formulae describes Marginal VaR for a portfolio p, where V_i is the value of the i-th asset in the portfolio? (All other notation and symbols have their usual meaning.) <br \/>\r<br>A) <br \/>\r<br><br><img decoding=\"async\" width=56 height=47 id=\"\u56fe\u7247 26\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image001-42.jpg\"><br><br \/>\r<br>B) <br \/>\r<br><br><img decoding=\"async\" width=70 height=48 id=\"\u56fe\u7247 27\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image002-39.jpg\"><br><br \/>\r<br>C) <br \/>\r<br><br><img decoding=\"async\" width=70 height=48 id=\"\u56fe\u7247 28\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image003-37.jpg\"><br><br \/>\r<br>D) <br \/>\r<br>All of the above<\/div><input type='hidden' name='question_id[]' id='qID_5' value='214441' \/><input type='hidden' id='answerType214441' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214441[]' id='answer-id-854885' class='answer   answerof-214441 ' value='854885'   \/><label for='answer-id-854885' id='answer-label-854885' class=' answer'><span>Option A<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214441[]' id='answer-id-854886' class='answer   answerof-214441 ' value='854886'   \/><label for='answer-id-854886' id='answer-label-854886' class=' answer'><span>Option B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214441[]' id='answer-id-854887' class='answer   answerof-214441 ' value='854887'   \/><label for='answer-id-854887' id='answer-label-854887' class=' answer'><span>Option C<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214441[]' id='answer-id-854888' class='answer   answerof-214441 ' value='854888'   \/><label for='answer-id-854888' id='answer-label-854888' class=' answer'><span>Option D<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-6' style=';'><div id='questionWrap-6'  class='   watupro-question-id-214442'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>6. <\/span>Which of the following should be included when calculating the Gross Income indicator used to calculate operational risk capital under the basic indicator and standardized approaches under Basel II?<\/div><input type='hidden' name='question_id[]' id='qID_6' value='214442' \/><input type='hidden' id='answerType214442' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214442[]' id='answer-id-854889' class='answer   answerof-214442 ' value='854889'   \/><label for='answer-id-854889' id='answer-label-854889' class=' answer'><span>Insurance income<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214442[]' id='answer-id-854890' class='answer   answerof-214442 ' value='854890'   \/><label for='answer-id-854890' id='answer-label-854890' class=' answer'><span>Operating expenses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214442[]' id='answer-id-854891' class='answer   answerof-214442 ' value='854891'   \/><label for='answer-id-854891' id='answer-label-854891' class=' answer'><span>Fees paid to outsourcing service proviers<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214442[]' id='answer-id-854892' class='answer   answerof-214442 ' value='854892'   \/><label for='answer-id-854892' id='answer-label-854892' class=' answer'><span>Net non-interest income<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-7' style=';'><div id='questionWrap-7'  class='   watupro-question-id-214443'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>7. <\/span>A loan portfolio's full notional value is $100, and its value in a worst case scenario at the 99% level of confidence is $65. Expected losses on the portfolio are estimated at 10% . <br \/>\r<br>What is the level of economic capital required to cushion unexpected losses?<\/div><input type='hidden' name='question_id[]' id='qID_7' value='214443' \/><input type='hidden' id='answerType214443' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214443[]' id='answer-id-854893' class='answer   answerof-214443 ' value='854893'   \/><label for='answer-id-854893' id='answer-label-854893' class=' answer'><span>25<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214443[]' id='answer-id-854894' class='answer   answerof-214443 ' value='854894'   \/><label for='answer-id-854894' id='answer-label-854894' class=' answer'><span>65<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214443[]' id='answer-id-854895' class='answer   answerof-214443 ' value='854895'   \/><label for='answer-id-854895' id='answer-label-854895' class=' answer'><span>10<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214443[]' id='answer-id-854896' class='answer   answerof-214443 ' value='854896'   \/><label for='answer-id-854896' id='answer-label-854896' class=' answer'><span>35<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-8' style=';'><div id='questionWrap-8'  class='   watupro-question-id-214444'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>8. <\/span>Which of the following can be used to reduce credit exposures to a counterparty: <br \/>\r<br>I. Netting arrangements <br \/>\r<br>II. Collateral requirements <br \/>\r<br>III. Offsetting trades with other counterparties <br \/>\r<br>IV. Credit default swaps<\/div><input type='hidden' name='question_id[]' id='qID_8' value='214444' \/><input type='hidden' id='answerType214444' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214444[]' id='answer-id-854897' class='answer   answerof-214444 ' value='854897'   \/><label for='answer-id-854897' id='answer-label-854897' class=' answer'><span>I and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214444[]' id='answer-id-854898' class='answer   answerof-214444 ' value='854898'   \/><label for='answer-id-854898' id='answer-label-854898' class=' answer'><span>I, II, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214444[]' id='answer-id-854899' class='answer   answerof-214444 ' value='854899'   \/><label for='answer-id-854899' id='answer-label-854899' class=' answer'><span>I, II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214444[]' id='answer-id-854900' class='answer   answerof-214444 ' value='854900'   \/><label for='answer-id-854900' id='answer-label-854900' class=' answer'><span>III and IV<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-9' style=';'><div id='questionWrap-9'  class='   watupro-question-id-214445'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>9. <\/span>Which of the following is NOT an approach used to allocate economic capital to underlying business units:<\/div><input type='hidden' name='question_id[]' id='qID_9' value='214445' \/><input type='hidden' id='answerType214445' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214445[]' id='answer-id-854901' class='answer   answerof-214445 ' value='854901'   \/><label for='answer-id-854901' id='answer-label-854901' class=' answer'><span>Stand alone economic capital contributions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214445[]' id='answer-id-854902' class='answer   answerof-214445 ' value='854902'   \/><label for='answer-id-854902' id='answer-label-854902' class=' answer'><span>Marginal economic capital contributions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214445[]' id='answer-id-854903' class='answer   answerof-214445 ' value='854903'   \/><label for='answer-id-854903' id='answer-label-854903' class=' answer'><span>Fixed ratio economic capital contributions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214445[]' id='answer-id-854904' class='answer   answerof-214445 ' value='854904'   \/><label for='answer-id-854904' id='answer-label-854904' class=' answer'><span>Incremental economic capital contributions<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-10' style=';'><div id='questionWrap-10'  class='   watupro-question-id-214446'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>10. <\/span>For a given notional amount, which of the following carries the greatest counterparty exposure (assuming the same counterparty credit rating for each):<\/div><input type='hidden' name='question_id[]' id='qID_10' value='214446' \/><input type='hidden' id='answerType214446' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214446[]' id='answer-id-854905' class='answer   answerof-214446 ' value='854905'   \/><label for='answer-id-854905' id='answer-label-854905' class=' answer'><span>A futures contract on an equity index<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214446[]' id='answer-id-854906' class='answer   answerof-214446 ' value='854906'   \/><label for='answer-id-854906' id='answer-label-854906' class=' answer'><span>A one year certificate of deposit<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214446[]' id='answer-id-854907' class='answer   answerof-214446 ' value='854907'   \/><label for='answer-id-854907' id='answer-label-854907' class=' answer'><span>A one year forward foreign exchange contract<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214446[]' id='answer-id-854908' class='answer   answerof-214446 ' value='854908'   \/><label for='answer-id-854908' id='answer-label-854908' class=' answer'><span>A one year interest rate swap<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-11' style=';'><div id='questionWrap-11'  class='   watupro-question-id-214447'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>11. <\/span>Identify the correct sequence of events as it unfolded in the credit crisis beginning 2007: <br \/>\r<br>I. Mortgage defaults increased <br \/>\r<br>II. Collapse in prices of unrelated assets as banks tried to create liquidity <br \/>\r<br>III. Banks refused to lend or transact with each other <br \/>\r<br>IV. Asset prices for CDOs collapsed<\/div><input type='hidden' name='question_id[]' id='qID_11' value='214447' \/><input type='hidden' id='answerType214447' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214447[]' id='answer-id-854909' class='answer   answerof-214447 ' value='854909'   \/><label for='answer-id-854909' id='answer-label-854909' class=' answer'><span>III, IV, I and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214447[]' id='answer-id-854910' class='answer   answerof-214447 ' value='854910'   \/><label for='answer-id-854910' id='answer-label-854910' class=' answer'><span>I, III, IV and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214447[]' id='answer-id-854911' class='answer   answerof-214447 ' value='854911'   \/><label for='answer-id-854911' id='answer-label-854911' class=' answer'><span>I, IV, III and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214447[]' id='answer-id-854912' class='answer   answerof-214447 ' value='854912'   \/><label for='answer-id-854912' id='answer-label-854912' class=' answer'><span>IV, I, II and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-12' style=';'><div id='questionWrap-12'  class='   watupro-question-id-214448'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>12. <\/span>Which of the following belong in a credit risk report?<\/div><input type='hidden' name='question_id[]' id='qID_12' value='214448' \/><input type='hidden' id='answerType214448' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214448[]' id='answer-id-854913' class='answer   answerof-214448 ' value='854913'   \/><label for='answer-id-854913' id='answer-label-854913' class=' answer'><span>Exposures by country<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214448[]' id='answer-id-854914' class='answer   answerof-214448 ' value='854914'   \/><label for='answer-id-854914' id='answer-label-854914' class=' answer'><span>Exposures by industry<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214448[]' id='answer-id-854915' class='answer   answerof-214448 ' value='854915'   \/><label for='answer-id-854915' id='answer-label-854915' class=' answer'><span>Largest exposures by counterparty<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214448[]' id='answer-id-854916' class='answer   answerof-214448 ' value='854916'   \/><label for='answer-id-854916' id='answer-label-854916' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-13' style=';'><div id='questionWrap-13'  class='   watupro-question-id-214449'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>13. <\/span>Which of the following statements are true: <br \/>\r<br>I. A transition matrix is the probability of a security migrating from one rating class to another during its lifetime. <br \/>\r<br>II. Marginal default probabilities refer to probabilities of default in a particular period, given survival atthe beginning of that period. <br \/>\r<br>III. Marginal default probabilities will always be greater than the corresponding cumulative default probability. <br \/>\r<br>IV. Loss given default is generally greater when recovery rates are low.<\/div><input type='hidden' name='question_id[]' id='qID_13' value='214449' \/><input type='hidden' id='answerType214449' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214449[]' id='answer-id-854917' class='answer   answerof-214449 ' value='854917'   \/><label for='answer-id-854917' id='answer-label-854917' class=' answer'><span>I and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214449[]' id='answer-id-854918' class='answer   answerof-214449 ' value='854918'   \/><label for='answer-id-854918' id='answer-label-854918' class=' answer'><span>I, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214449[]' id='answer-id-854919' class='answer   answerof-214449 ' value='854919'   \/><label for='answer-id-854919' id='answer-label-854919' class=' answer'><span>II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214449[]' id='answer-id-854920' class='answer   answerof-214449 ' value='854920'   \/><label for='answer-id-854920' id='answer-label-854920' class=' answer'><span>I and IV<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-14' style=';'><div id='questionWrap-14'  class='   watupro-question-id-214450'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>14. <\/span>The VaR of a portfolio at the 99% confidence level is $250,000 when mean return is assumed to be zero. If the assumption of zero returns is changed to an assumption of returns of $10,000, what is the revised VaR?<\/div><input type='hidden' name='question_id[]' id='qID_14' value='214450' \/><input type='hidden' id='answerType214450' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214450[]' id='answer-id-854921' class='answer   answerof-214450 ' value='854921'   \/><label for='answer-id-854921' id='answer-label-854921' class=' answer'><span>260000<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214450[]' id='answer-id-854922' class='answer   answerof-214450 ' value='854922'   \/><label for='answer-id-854922' id='answer-label-854922' class=' answer'><span>240000<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214450[]' id='answer-id-854923' class='answer   answerof-214450 ' value='854923'   \/><label for='answer-id-854923' id='answer-label-854923' class=' answer'><span>273260<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214450[]' id='answer-id-854924' class='answer   answerof-214450 ' value='854924'   \/><label for='answer-id-854924' id='answer-label-854924' class=' answer'><span>226740<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-15' style=';'><div id='questionWrap-15'  class='   watupro-question-id-214451'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>15. <\/span>Which of the following need to be assumed to convert a transition probability matrix for a given time period to the transition probability matrix for another length of time: <br \/>\r<br>I. Time invariance <br \/>\r<br>II. Markov property <br \/>\r<br>III. Normal distribution <br \/>\r<br>IV. Zero skewness<\/div><input type='hidden' name='question_id[]' id='qID_15' value='214451' \/><input type='hidden' id='answerType214451' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214451[]' id='answer-id-854925' class='answer   answerof-214451 ' value='854925'   \/><label for='answer-id-854925' id='answer-label-854925' class=' answer'><span>I, II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214451[]' id='answer-id-854926' class='answer   answerof-214451 ' value='854926'   \/><label for='answer-id-854926' id='answer-label-854926' class=' answer'><span>III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214451[]' id='answer-id-854927' class='answer   answerof-214451 ' value='854927'   \/><label for='answer-id-854927' id='answer-label-854927' class=' answer'><span>I and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214451[]' id='answer-id-854928' class='answer   answerof-214451 ' value='854928'   \/><label for='answer-id-854928' id='answer-label-854928' class=' answer'><span>II and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-16' style=';'><div id='questionWrap-16'  class='   watupro-question-id-214452'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>16. <\/span>Which of the following contributed to the systemic failure during the credit crisis that began in 2007?<\/div><input type='hidden' name='question_id[]' id='qID_16' value='214452' \/><input type='hidden' id='answerType214452' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214452[]' id='answer-id-854929' class='answer   answerof-214452 ' value='854929'   \/><label for='answer-id-854929' id='answer-label-854929' class=' answer'><span>Stress tests that did not stress enough<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214452[]' id='answer-id-854930' class='answer   answerof-214452 ' value='854930'   \/><label for='answer-id-854930' id='answer-label-854930' class=' answer'><span>Moral hazard from the strategy of 'originate and distribute'<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214452[]' id='answer-id-854931' class='answer   answerof-214452 ' value='854931'   \/><label for='answer-id-854931' id='answer-label-854931' class=' answer'><span>Inadequate attentionpaid to liquidity risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214452[]' id='answer-id-854932' class='answer   answerof-214452 ' value='854932'   \/><label for='answer-id-854932' id='answer-label-854932' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-17' style=';'><div id='questionWrap-17'  class='   watupro-question-id-214453'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>17. <\/span>If the full notional value of a debt portfolio is $100m, its expected value in a year is $85m, and the worst value of the portfolio in one year's time at 99% confidence level is $60m, then what is the credit VaR?<\/div><input type='hidden' name='question_id[]' id='qID_17' value='214453' \/><input type='hidden' id='answerType214453' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214453[]' id='answer-id-854933' class='answer   answerof-214453 ' value='854933'   \/><label for='answer-id-854933' id='answer-label-854933' class=' answer'><span>$40m<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214453[]' id='answer-id-854934' class='answer   answerof-214453 ' value='854934'   \/><label for='answer-id-854934' id='answer-label-854934' class=' answer'><span>$25m<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214453[]' id='answer-id-854935' class='answer   answerof-214453 ' value='854935'   \/><label for='answer-id-854935' id='answer-label-854935' class=' answer'><span>$60m<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214453[]' id='answer-id-854936' class='answer   answerof-214453 ' value='854936'   \/><label for='answer-id-854936' id='answer-label-854936' class=' answer'><span>$15m<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-18' style=';'><div id='questionWrap-18'  class='   watupro-question-id-214454'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>18. <\/span>According to the Basel II framework, subordinated term debt that was originally issued 4 years ago with amaturity of 6 years is considered a part of:<\/div><input type='hidden' name='question_id[]' id='qID_18' value='214454' \/><input type='hidden' id='answerType214454' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214454[]' id='answer-id-854937' class='answer   answerof-214454 ' value='854937'   \/><label for='answer-id-854937' id='answer-label-854937' class=' answer'><span>Tier 2 capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214454[]' id='answer-id-854938' class='answer   answerof-214454 ' value='854938'   \/><label for='answer-id-854938' id='answer-label-854938' class=' answer'><span>Tier 1 capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214454[]' id='answer-id-854939' class='answer   answerof-214454 ' value='854939'   \/><label for='answer-id-854939' id='answer-label-854939' class=' answer'><span>Tier 3 capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214454[]' id='answer-id-854940' class='answer   answerof-214454 ' value='854940'   \/><label for='answer-id-854940' id='answer-label-854940' class=' answer'><span>None of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-19' style=';'><div id='questionWrap-19'  class='   watupro-question-id-214455'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>19. <\/span>According to the implied capital model, operational risk capital is estimated as:<\/div><input type='hidden' name='question_id[]' id='qID_19' value='214455' \/><input type='hidden' id='answerType214455' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214455[]' id='answer-id-854941' class='answer   answerof-214455 ' value='854941'   \/><label for='answer-id-854941' id='answer-label-854941' class=' answer'><span>Operational risk capital held by similar firms, appropriately scaled<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214455[]' id='answer-id-854942' class='answer   answerof-214455 ' value='854942'   \/><label for='answer-id-854942' id='answer-label-854942' class=' answer'><span>Total capital less market risk capital less credit risk capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214455[]' id='answer-id-854943' class='answer   answerof-214455 ' value='854943'   \/><label for='answer-id-854943' id='answer-label-854943' class=' answer'><span>Capitalimplied from known risk premiums and the firm's earnings<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214455[]' id='answer-id-854944' class='answer   answerof-214455 ' value='854944'   \/><label for='answer-id-854944' id='answer-label-854944' class=' answer'><span>Total capital based on the capital asset pricing model<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-20' style=';'><div id='questionWrap-20'  class='   watupro-question-id-214456'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>20. <\/span>Which of the following are a CRO's responsibilities: <br \/>\r<br>I. Statutory financial reporting <br \/>\r<br>II. Reporting to the audit committee <br \/>\r<br>III. Compliance with risk regulatory standards <br \/>\r<br>IV. Operational risk<\/div><input type='hidden' name='question_id[]' id='qID_20' value='214456' \/><input type='hidden' id='answerType214456' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214456[]' id='answer-id-854945' class='answer   answerof-214456 ' value='854945'   \/><label for='answer-id-854945' id='answer-label-854945' class=' answer'><span>I and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214456[]' id='answer-id-854946' class='answer   answerof-214456 ' value='854946'   \/><label for='answer-id-854946' id='answer-label-854946' class=' answer'><span>II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214456[]' id='answer-id-854947' class='answer   answerof-214456 ' value='854947'   \/><label for='answer-id-854947' id='answer-label-854947' class=' answer'><span>III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214456[]' id='answer-id-854948' class='answer   answerof-214456 ' value='854948'   \/><label for='answer-id-854948' id='answer-label-854948' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-21' style=';'><div id='questionWrap-21'  class='   watupro-question-id-214457'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>21. <\/span>Which of the following statements are true: <br \/>\r<br>I. Top down approaches help focus management attention on the frequency and severity of loss events, while bottom up approaches do not. <br \/>\r<br>II. Top down approaches rely upon high level data while bottom up approaches need firm specific risk data to estimate risk. <br \/>\r<br>III. Scenario analysis can help capture both qualitative and quantitative dimensions of operational risk.<\/div><input type='hidden' name='question_id[]' id='qID_21' value='214457' \/><input type='hidden' id='answerType214457' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214457[]' id='answer-id-854949' class='answer   answerof-214457 ' value='854949'   \/><label for='answer-id-854949' id='answer-label-854949' class=' answer'><span>III only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214457[]' id='answer-id-854950' class='answer   answerof-214457 ' value='854950'   \/><label for='answer-id-854950' id='answer-label-854950' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214457[]' id='answer-id-854951' class='answer   answerof-214457 ' value='854951'   \/><label for='answer-id-854951' id='answer-label-854951' class=' answer'><span>I only<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214457[]' id='answer-id-854952' class='answer   answerof-214457 ' value='854952'   \/><label for='answer-id-854952' id='answer-label-854952' class=' answer'><span>II only<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-22' style=';'><div id='questionWrap-22'  class='   watupro-question-id-214458'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>22. <\/span>When compared to a medium severity medium frequency risk, the operational risk capital requirement for a high severity very low frequency risk is likely to be:<\/div><input type='hidden' name='question_id[]' id='qID_22' value='214458' \/><input type='hidden' id='answerType214458' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214458[]' id='answer-id-854953' class='answer   answerof-214458 ' value='854953'   \/><label for='answer-id-854953' id='answer-label-854953' class=' answer'><span>Higher<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214458[]' id='answer-id-854954' class='answer   answerof-214458 ' value='854954'   \/><label for='answer-id-854954' id='answer-label-854954' class=' answer'><span>Lower<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214458[]' id='answer-id-854955' class='answer   answerof-214458 ' value='854955'   \/><label for='answer-id-854955' id='answer-label-854955' class=' answer'><span>Zero<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214458[]' id='answer-id-854956' class='answer   answerof-214458 ' value='854956'   \/><label for='answer-id-854956' id='answer-label-854956' class=' answer'><span>Unaffected by differences in frequency or severity<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-23' style=';'><div id='questionWrap-23'  class='   watupro-question-id-214459'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>23. <\/span>The sum of the stand alone economic capital of all the business units of a bank is:<\/div><input type='hidden' name='question_id[]' id='qID_23' value='214459' \/><input type='hidden' id='answerType214459' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214459[]' id='answer-id-854957' class='answer   answerof-214459 ' value='854957'   \/><label for='answer-id-854957' id='answer-label-854957' class=' answer'><span>less than the economic capital for the firm as a whole<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214459[]' id='answer-id-854958' class='answer   answerof-214459 ' value='854958'   \/><label for='answer-id-854958' id='answer-label-854958' class=' answer'><span>more than the economic capital for the firm as a whole<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214459[]' id='answer-id-854959' class='answer   answerof-214459 ' value='854959'   \/><label for='answer-id-854959' id='answer-label-854959' class=' answer'><span>equalto the economic capital for the firm as a whole<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214459[]' id='answer-id-854960' class='answer   answerof-214459 ' value='854960'   \/><label for='answer-id-854960' id='answer-label-854960' class=' answer'><span>unrelated to the economic capital for the firm as a whole<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-24' style=';'><div id='questionWrap-24'  class='   watupro-question-id-214460'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>24. <\/span>Which of the following is not a permitted approach under Basel II for calculating operational riskcapital<\/div><input type='hidden' name='question_id[]' id='qID_24' value='214460' \/><input type='hidden' id='answerType214460' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214460[]' id='answer-id-854961' class='answer   answerof-214460 ' value='854961'   \/><label for='answer-id-854961' id='answer-label-854961' class=' answer'><span>the internal measurement approach<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214460[]' id='answer-id-854962' class='answer   answerof-214460 ' value='854962'   \/><label for='answer-id-854962' id='answer-label-854962' class=' answer'><span>the basic indicator approach<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214460[]' id='answer-id-854963' class='answer   answerof-214460 ' value='854963'   \/><label for='answer-id-854963' id='answer-label-854963' class=' answer'><span>the standardized approach<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214460[]' id='answer-id-854964' class='answer   answerof-214460 ' value='854964'   \/><label for='answer-id-854964' id='answer-label-854964' class=' answer'><span>the advanced measurement approach<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-25' style=';'><div id='questionWrap-25'  class='   watupro-question-id-214461'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>25. <\/span>Which of the following statements are true? <br \/>\r<br>I. Risk governance structures distribute rights and responsibilities among stakeholders in the corporation <br \/>\r<br>II. Cybernetics is the multidisciplinary study of cyber risk and control systems underlying information systems in an organization <br \/>\r<br>III. Corporate governance is a subset of the larger subject of risk governance <br \/>\r<br>IV. The Cadbury report was issued in the early 90s and was one of the early frameworks for corporate governance<\/div><input type='hidden' name='question_id[]' id='qID_25' value='214461' \/><input type='hidden' id='answerType214461' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214461[]' id='answer-id-854965' class='answer   answerof-214461 ' value='854965'   \/><label for='answer-id-854965' id='answer-label-854965' class=' answer'><span>I, II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214461[]' id='answer-id-854966' class='answer   answerof-214461 ' value='854966'   \/><label for='answer-id-854966' id='answer-label-854966' class=' answer'><span>I and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214461[]' id='answer-id-854967' class='answer   answerof-214461 ' value='854967'   \/><label for='answer-id-854967' id='answer-label-854967' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214461[]' id='answer-id-854968' class='answer   answerof-214461 ' value='854968'   \/><label for='answer-id-854968' id='answer-label-854968' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-26' style=';'><div id='questionWrap-26'  class='   watupro-question-id-214462'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>26. <\/span>The generalized Pareto distribution, when used in the context of operational risk, is used to model:<\/div><input type='hidden' name='question_id[]' id='qID_26' value='214462' \/><input type='hidden' id='answerType214462' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214462[]' id='answer-id-854969' class='answer   answerof-214462 ' value='854969'   \/><label for='answer-id-854969' id='answer-label-854969' class=' answer'><span>Tail events<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214462[]' id='answer-id-854970' class='answer   answerof-214462 ' value='854970'   \/><label for='answer-id-854970' id='answer-label-854970' class=' answer'><span>Average losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214462[]' id='answer-id-854971' class='answer   answerof-214462 ' value='854971'   \/><label for='answer-id-854971' id='answer-label-854971' class=' answer'><span>Unexpected losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214462[]' id='answer-id-854972' class='answer   answerof-214462 ' value='854972'   \/><label for='answer-id-854972' id='answer-label-854972' class=' answer'><span>Expected losses<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-27' style=';'><div id='questionWrap-27'  class='   watupro-question-id-214463'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>27. <\/span>A bank expects the error rate in transaction data entry for a particular business process to be 0.005% . <br \/>\r<br>What is the range of expected errors in a day within +\/- 2 standard deviations if there are 2,000,000 such transactions each day?<\/div><input type='hidden' name='question_id[]' id='qID_27' value='214463' \/><input type='hidden' id='answerType214463' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214463[]' id='answer-id-854973' class='answer   answerof-214463 ' value='854973'   \/><label for='answer-id-854973' id='answer-label-854973' class=' answer'><span>80 to 120 errors in a day<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214463[]' id='answer-id-854974' class='answer   answerof-214463 ' value='854974'   \/><label for='answer-id-854974' id='answer-label-854974' class=' answer'><span>60 to 80 errors in a day<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214463[]' id='answer-id-854975' class='answer   answerof-214463 ' value='854975'   \/><label for='answer-id-854975' id='answer-label-854975' class=' answer'><span>0 to 200 errors in a day<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214463[]' id='answer-id-854976' class='answer   answerof-214463 ' value='854976'   \/><label for='answer-id-854976' id='answer-label-854976' class=' answer'><span>90 to 110 errors in a day<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-28' style=';'><div id='questionWrap-28'  class='   watupro-question-id-214464'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>28. <\/span>Which loss event type is the failure to timely deliver collateral classified as under the Basel II framework?<\/div><input type='hidden' name='question_id[]' id='qID_28' value='214464' \/><input type='hidden' id='answerType214464' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214464[]' id='answer-id-854977' class='answer   answerof-214464 ' value='854977'   \/><label for='answer-id-854977' id='answer-label-854977' class=' answer'><span>Clients, products and business practices<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214464[]' id='answer-id-854978' class='answer   answerof-214464 ' value='854978'   \/><label for='answer-id-854978' id='answer-label-854978' class=' answer'><span>External fraud<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214464[]' id='answer-id-854979' class='answer   answerof-214464 ' value='854979'   \/><label for='answer-id-854979' id='answer-label-854979' class=' answer'><span>Information security<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214464[]' id='answer-id-854980' class='answer   answerof-214464 ' value='854980'   \/><label for='answer-id-854980' id='answer-label-854980' class=' answer'><span>Execution, Delivery &amp; Process Management<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-29' style=';'><div id='questionWrap-29'  class='   watupro-question-id-214465'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>29. <\/span>An error by a third party service provider results in a loss to a client that the bank has to make up. Such as loss would be categorized per Basel IIoperational risk categories as:<\/div><input type='hidden' name='question_id[]' id='qID_29' value='214465' \/><input type='hidden' id='answerType214465' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214465[]' id='answer-id-854981' class='answer   answerof-214465 ' value='854981'   \/><label for='answer-id-854981' id='answer-label-854981' class=' answer'><span>Execution delivery and process management<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214465[]' id='answer-id-854982' class='answer   answerof-214465 ' value='854982'   \/><label for='answer-id-854982' id='answer-label-854982' class=' answer'><span>Outsourcing loss<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214465[]' id='answer-id-854983' class='answer   answerof-214465 ' value='854983'   \/><label for='answer-id-854983' id='answer-label-854983' class=' answer'><span>Business disruption and process failure<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214465[]' id='answer-id-854984' class='answer   answerof-214465 ' value='854984'   \/><label for='answer-id-854984' id='answer-label-854984' class=' answer'><span>Abnormal loss<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-30' style=';'><div id='questionWrap-30'  class='   watupro-question-id-214466'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>30. <\/span>Which of the following is not one of the 'three pillars' specified in the Basel accord:<\/div><input type='hidden' name='question_id[]' id='qID_30' value='214466' \/><input type='hidden' id='answerType214466' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214466[]' id='answer-id-854985' class='answer   answerof-214466 ' value='854985'   \/><label for='answer-id-854985' id='answer-label-854985' class=' answer'><span>Market discipline<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214466[]' id='answer-id-854986' class='answer   answerof-214466 ' value='854986'   \/><label for='answer-id-854986' id='answer-label-854986' class=' answer'><span>Supervisory review<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214466[]' id='answer-id-854987' class='answer   answerof-214466 ' value='854987'   \/><label for='answer-id-854987' id='answer-label-854987' class=' answer'><span>National regulation<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214466[]' id='answer-id-854988' class='answer   answerof-214466 ' value='854988'   \/><label for='answer-id-854988' id='answer-label-854988' class=' answer'><span>Minimum capital requirements<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-31' style=';'><div id='questionWrap-31'  class='   watupro-question-id-214467'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>31. <\/span>If F be the face value of a firm's debt, V the value of its assets and E the market value of equity, then according to the option pricing approach a default on debt occurs when:<\/div><input type='hidden' name='question_id[]' id='qID_31' value='214467' \/><input type='hidden' id='answerType214467' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214467[]' id='answer-id-854989' class='answer   answerof-214467 ' value='854989'   \/><label for='answer-id-854989' id='answer-label-854989' class=' answer'><span>F &gt; V<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214467[]' id='answer-id-854990' class='answer   answerof-214467 ' value='854990'   \/><label for='answer-id-854990' id='answer-label-854990' class=' answer'><span>V &lt; E<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214467[]' id='answer-id-854991' class='answer   answerof-214467 ' value='854991'   \/><label for='answer-id-854991' id='answer-label-854991' class=' answer'><span>F &lt; V<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214467[]' id='answer-id-854992' class='answer   answerof-214467 ' value='854992'   \/><label for='answer-id-854992' id='answer-label-854992' class=' answer'><span>F - E &lt; V<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-32' style=';'><div id='questionWrap-32'  class='   watupro-question-id-214468'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>32. <\/span>Which of the following is the best description of the spread premium puzzle:<\/div><input type='hidden' name='question_id[]' id='qID_32' value='214468' \/><input type='hidden' id='answerType214468' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214468[]' id='answer-id-854993' class='answer   answerof-214468 ' value='854993'   \/><label for='answer-id-854993' id='answer-label-854993' class=' answer'><span>The spread premium puzzle refers to observed default rates being much less than implied default rates, leading to lower credit bonds being relatively cheap when compared to their actual default probabilities<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214468[]' id='answer-id-854994' class='answer   answerof-214468 ' value='854994'   \/><label for='answer-id-854994' id='answer-label-854994' class=' answer'><span>The spread premium puzzle refers to dollar denominated non-US sovereign bonds being priced a at significant discount to other similar USD denominated assets<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214468[]' id='answer-id-854995' class='answer   answerof-214468 ' value='854995'   \/><label for='answer-id-854995' id='answer-label-854995' class=' answer'><span>The spread premium puzzle refers to AAA corporate bonds being priced at almost the same prices as equivalent treasury bonds without offering the same liquidity or guarantee as treasury bonds<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214468[]' id='answer-id-854996' class='answer   answerof-214468 ' value='854996'   \/><label for='answer-id-854996' id='answer-label-854996' class=' answer'><span>The spread premium puzzle refers to the moral hazard implicit in the monoline insurance market<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-33' style=';'><div id='questionWrap-33'  class='   watupro-question-id-214469'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>33. <\/span>Which of the following situations are not suitable for applying parametric VaR: <br \/>\r<br>I. Where the portfolio's valuation is linearly dependent upon risk factors <br \/>\r<br>II. Where the portfolio consists of non-linear products such as options and large moves are involved <br \/>\r<br>III. Where the returns of risk factors are known to be not normally distributed<\/div><input type='hidden' name='question_id[]' id='qID_33' value='214469' \/><input type='hidden' id='answerType214469' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214469[]' id='answer-id-854997' class='answer   answerof-214469 ' value='854997'   \/><label for='answer-id-854997' id='answer-label-854997' class=' answer'><span>I and II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214469[]' id='answer-id-854998' class='answer   answerof-214469 ' value='854998'   \/><label for='answer-id-854998' id='answer-label-854998' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214469[]' id='answer-id-854999' class='answer   answerof-214469 ' value='854999'   \/><label for='answer-id-854999' id='answer-label-854999' class=' answer'><span>I and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214469[]' id='answer-id-855000' class='answer   answerof-214469 ' value='855000'   \/><label for='answer-id-855000' id='answer-label-855000' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-34' style=';'><div id='questionWrap-34'  class='   watupro-question-id-214470'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>34. <\/span>A corporate bond maturing in 1 year yields 8.5% per year,while a similar treasury bond yields 4% . <br \/>\r<br>What is the probability of default for the corporate bond assuming the recovery rate is zero?<\/div><input type='hidden' name='question_id[]' id='qID_34' value='214470' \/><input type='hidden' id='answerType214470' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214470[]' id='answer-id-855001' class='answer   answerof-214470 ' value='855001'   \/><label for='answer-id-855001' id='answer-label-855001' class=' answer'><span>4.15%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214470[]' id='answer-id-855002' class='answer   answerof-214470 ' value='855002'   \/><label for='answer-id-855002' id='answer-label-855002' class=' answer'><span>4.50%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214470[]' id='answer-id-855003' class='answer   answerof-214470 ' value='855003'   \/><label for='answer-id-855003' id='answer-label-855003' class=' answer'><span>8.50%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214470[]' id='answer-id-855004' class='answer   answerof-214470 ' value='855004'   \/><label for='answer-id-855004' id='answer-label-855004' class=' answer'><span>Cannot be determined from the given information<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-35' style=';'><div id='questionWrap-35'  class='   watupro-question-id-214471'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>35. <\/span>As the persistence parameter under EWMA is lowered, which of the following would be true:<\/div><input type='hidden' name='question_id[]' id='qID_35' value='214471' \/><input type='hidden' id='answerType214471' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214471[]' id='answer-id-855005' class='answer   answerof-214471 ' value='855005'   \/><label for='answer-id-855005' id='answer-label-855005' class=' answer'><span>The model will react slower to market shocks<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214471[]' id='answer-id-855006' class='answer   answerof-214471 ' value='855006'   \/><label for='answer-id-855006' id='answer-label-855006' class=' answer'><span>The model will react faster to market shocks<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214471[]' id='answer-id-855007' class='answer   answerof-214471 ' value='855007'   \/><label for='answer-id-855007' id='answer-label-855007' class=' answer'><span>High variance from the recent past will persist for longer<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214471[]' id='answer-id-855008' class='answer   answerof-214471 ' value='855008'   \/><label for='answer-id-855008' id='answer-label-855008' class=' answer'><span>The model will give lower weight to recent returns<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-36' style=';'><div id='questionWrap-36'  class='   watupro-question-id-214472'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>36. <\/span>What is the risk horizon period used for credit risk as generally used for economic capital calculations and as required by regulation?<\/div><input type='hidden' name='question_id[]' id='qID_36' value='214472' \/><input type='hidden' id='answerType214472' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214472[]' id='answer-id-855009' class='answer   answerof-214472 ' value='855009'   \/><label for='answer-id-855009' id='answer-label-855009' class=' answer'><span>1-day<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214472[]' id='answer-id-855010' class='answer   answerof-214472 ' value='855010'   \/><label for='answer-id-855010' id='answer-label-855010' class=' answer'><span>1 year<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214472[]' id='answer-id-855011' class='answer   answerof-214472 ' value='855011'   \/><label for='answer-id-855011' id='answer-label-855011' class=' answer'><span>10 years<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214472[]' id='answer-id-855012' class='answer   answerof-214472 ' value='855012'   \/><label for='answer-id-855012' id='answer-label-855012' class=' answer'><span>10 days<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-37' style=';'><div id='questionWrap-37'  class='   watupro-question-id-214473'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>37. <\/span>A key problem with return on equity as a measure of comparative performance is:<\/div><input type='hidden' name='question_id[]' id='qID_37' value='214473' \/><input type='hidden' id='answerType214473' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214473[]' id='answer-id-855013' class='answer   answerof-214473 ' value='855013'   \/><label for='answer-id-855013' id='answer-label-855013' class=' answer'><span>that return on equity is not adjusted for risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214473[]' id='answer-id-855014' class='answer   answerof-214473 ' value='855014'   \/><label for='answer-id-855014' id='answer-label-855014' class=' answer'><span>that return on equity are not adjusted for cash flows being different from accounting earnings<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214473[]' id='answer-id-855015' class='answer   answerof-214473 ' value='855015'   \/><label for='answer-id-855015' id='answer-label-855015' class=' answer'><span>that return on equity measures do not account for interest and taxes<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214473[]' id='answer-id-855016' class='answer   answerof-214473 ' value='855016'   \/><label for='answer-id-855016' id='answer-label-855016' class=' answer'><span>that return on equity ignores the effect of leverage on returns to shareholders<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-38' style=';'><div id='questionWrap-38'  class='   watupro-question-id-214474'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>38. <\/span>CORRECT TEXT <br \/>\r<br>Which of the following statements are true in relation to Historical Simulation VaR? <br \/>\r<br>I. Historical Simulation VaR assumes returns are normally distributed but have fat tails <br \/>\r<br>II. It uses full revaluation, as opposed to delta or delta-gamma approximations <br \/>\r<br>III. Acorrelation matrix is constructed using historical scenarios <br \/>\r<br>IV. It particularly suits new products that may not have a long time series of historical data available<\/div><input type='hidden' name='question_id[]' id='qID_38' value='214474' \/><input type='hidden' id='answerType214474' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214474[]' id='answer-id-855017' class='answer   answerof-214474 ' value='855017'   \/><label for='answer-id-855017' id='answer-label-855017' class=' answer'><span>II<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214474[]' id='answer-id-855018' class='answer   answerof-214474 ' value='855018'   \/><label for='answer-id-855018' id='answer-label-855018' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214474[]' id='answer-id-855019' class='answer   answerof-214474 ' value='855019'   \/><label for='answer-id-855019' id='answer-label-855019' class=' answer'><span>I and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214474[]' id='answer-id-855020' class='answer   answerof-214474 ' value='855020'   \/><label for='answer-id-855020' id='answer-label-855020' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-39' style=';'><div id='questionWrap-39'  class='   watupro-question-id-214475'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>39. <\/span>Which of the following statements are true: <br \/>\r<br>I. Pre-settlement risk is the risk that one of the parties to a contract might default prior to the maturity date or expiry of the contract. <br \/>\r<br>II. Pre-settlement risk can be partly mitigated by providing for early settlement in the agreements between the counterparties. <br \/>\r<br>III. The current exposure from an OTC derivatives contract is equivalent to its current replacement value. <br \/>\r<br>IV. Loan equivalent exposures are calculated even for exposures that are not loans as a practical matter for calculating credit risk exposure.<\/div><input type='hidden' name='question_id[]' id='qID_39' value='214475' \/><input type='hidden' id='answerType214475' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214475[]' id='answer-id-855021' class='answer   answerof-214475 ' value='855021'   \/><label for='answer-id-855021' id='answer-label-855021' class=' answer'><span>II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214475[]' id='answer-id-855022' class='answer   answerof-214475 ' value='855022'   \/><label for='answer-id-855022' id='answer-label-855022' class=' answer'><span>III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214475[]' id='answer-id-855023' class='answer   answerof-214475 ' value='855023'   \/><label for='answer-id-855023' id='answer-label-855023' class=' answer'><span>I, II, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214475[]' id='answer-id-855024' class='answer   answerof-214475 ' value='855024'   \/><label for='answer-id-855024' id='answer-label-855024' class=' answer'><span>II and III<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-40' style=';'><div id='questionWrap-40'  class='   watupro-question-id-214476'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>40. <\/span>Which loss event type is the loss of personally identifiableclient information classified as under the Basel II framework?<\/div><input type='hidden' name='question_id[]' id='qID_40' value='214476' \/><input type='hidden' id='answerType214476' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214476[]' id='answer-id-855025' class='answer   answerof-214476 ' value='855025'   \/><label for='answer-id-855025' id='answer-label-855025' class=' answer'><span>Technology risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214476[]' id='answer-id-855026' class='answer   answerof-214476 ' value='855026'   \/><label for='answer-id-855026' id='answer-label-855026' class=' answer'><span>Clients, products and business practices<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214476[]' id='answer-id-855027' class='answer   answerof-214476 ' value='855027'   \/><label for='answer-id-855027' id='answer-label-855027' class=' answer'><span>Information security<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214476[]' id='answer-id-855028' class='answer   answerof-214476 ' value='855028'   \/><label for='answer-id-855028' id='answer-label-855028' class=' answer'><span>External fraud<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-41' style=';'><div id='questionWrap-41'  class='   watupro-question-id-214477'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>41. <\/span>The Options Theoretic approach to calculating economic capital considers the value of capital as being equivalent to a call option with a strike price equal to:<\/div><input type='hidden' name='question_id[]' id='qID_41' value='214477' \/><input type='hidden' id='answerType214477' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214477[]' id='answer-id-855029' class='answer   answerof-214477 ' value='855029'   \/><label for='answer-id-855029' id='answer-label-855029' class=' answer'><span>The notional value ofthe debt<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214477[]' id='answer-id-855030' class='answer   answerof-214477 ' value='855030'   \/><label for='answer-id-855030' id='answer-label-855030' class=' answer'><span>The market value of the debt<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214477[]' id='answer-id-855031' class='answer   answerof-214477 ' value='855031'   \/><label for='answer-id-855031' id='answer-label-855031' class=' answer'><span>The value of the firm<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214477[]' id='answer-id-855032' class='answer   answerof-214477 ' value='855032'   \/><label for='answer-id-855032' id='answer-label-855032' class=' answer'><span>The value of the assets<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-42' style=';'><div id='questionWrap-42'  class='   watupro-question-id-214478'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>42. <\/span>A bank prices retail credit loans based on median default rates. Over the long run, it can expect:<\/div><input type='hidden' name='question_id[]' id='qID_42' value='214478' \/><input type='hidden' id='answerType214478' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214478[]' id='answer-id-855033' class='answer   answerof-214478 ' value='855033'   \/><label for='answer-id-855033' id='answer-label-855033' class=' answer'><span>Overestimation of risk and overpricing, leading to lossof market share<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214478[]' id='answer-id-855034' class='answer   answerof-214478 ' value='855034'   \/><label for='answer-id-855034' id='answer-label-855034' class=' answer'><span>A reduction in the rate of defaults<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214478[]' id='answer-id-855035' class='answer   answerof-214478 ' value='855035'   \/><label for='answer-id-855035' id='answer-label-855035' class=' answer'><span>Correct pricing of risk in the retail credit portfolio<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214478[]' id='answer-id-855036' class='answer   answerof-214478 ' value='855036'   \/><label for='answer-id-855036' id='answer-label-855036' class=' answer'><span>Underestimation and therefore underpricing of risk in it retail portfolio<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-43' style=';'><div id='questionWrap-43'  class='   watupro-question-id-214479'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>43. <\/span>In estimating credit exposure for a line of credit, it is usual to consider:<\/div><input type='hidden' name='question_id[]' id='qID_43' value='214479' \/><input type='hidden' id='answerType214479' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214479[]' id='answer-id-855037' class='answer   answerof-214479 ' value='855037'   \/><label for='answer-id-855037' id='answer-label-855037' class=' answer'><span>a fixed fraction of the line of credit to be the exposure at default even though the currently drawn amount is quite different from such a fraction.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214479[]' id='answer-id-855038' class='answer   answerof-214479 ' value='855038'   \/><label for='answer-id-855038' id='answer-label-855038' class=' answer'><span>the full value of the credit line to be the exposure at default as the borrower has an informational advantage that will lead them to borrow fully against the credit line at the time of default.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214479[]' id='answer-id-855039' class='answer   answerof-214479 ' value='855039'   \/><label for='answer-id-855039' id='answer-label-855039' class=' answer'><span>only the value of credit exposure currently existing against the credit line as the exposure at default.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214479[]' id='answer-id-855040' class='answer   answerof-214479 ' value='855040'   \/><label for='answer-id-855040' id='answer-label-855040' class=' answer'><span>the present value of the line of credit at the agreed rate of lending.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-44' style=';'><div id='questionWrap-44'  class='   watupro-question-id-214480'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>44. <\/span>When compared to a low severity high frequency risk, the operational risk capital requirement for a medium severity medium frequency risk is likely to be:<\/div><input type='hidden' name='question_id[]' id='qID_44' value='214480' \/><input type='hidden' id='answerType214480' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214480[]' id='answer-id-855041' class='answer   answerof-214480 ' value='855041'   \/><label for='answer-id-855041' id='answer-label-855041' class=' answer'><span>Zero<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214480[]' id='answer-id-855042' class='answer   answerof-214480 ' value='855042'   \/><label for='answer-id-855042' id='answer-label-855042' class=' answer'><span>Lower<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214480[]' id='answer-id-855043' class='answer   answerof-214480 ' value='855043'   \/><label for='answer-id-855043' id='answer-label-855043' class=' answer'><span>Higher<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214480[]' id='answer-id-855044' class='answer   answerof-214480 ' value='855044'   \/><label for='answer-id-855044' id='answer-label-855044' class=' answer'><span>Unaffected by differences in frequency or severity<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-45' style=';'><div id='questionWrap-45'  class='   watupro-question-id-214481'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>45. <\/span>Which of the following best describes the concept of marginalVaR of an asset in a portfolio:<\/div><input type='hidden' name='question_id[]' id='qID_45' value='214481' \/><input type='hidden' id='answerType214481' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214481[]' id='answer-id-855045' class='answer   answerof-214481 ' value='855045'   \/><label for='answer-id-855045' id='answer-label-855045' class=' answer'><span>Marginal VaR is the value of the expected losses on occasions where the VaR estimate is exceeded.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214481[]' id='answer-id-855046' class='answer   answerof-214481 ' value='855046'   \/><label for='answer-id-855046' id='answer-label-855046' class=' answer'><span>Marginal VaR is the contribution of the asset to portfolio VaR in a way that the sum of such calculations for all the assets in the portfolio adds up to the portfolio Va<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214481[]' id='answer-id-855047' class='answer   answerof-214481 ' value='855047'   \/><label for='answer-id-855047' id='answer-label-855047' class=' answer'><span>Marginal VaR is the change in the VaR estimate for the portfolio as a result of including the asset in the portfolio.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214481[]' id='answer-id-855048' class='answer   answerof-214481 ' value='855048'   \/><label for='answer-id-855048' id='answer-label-855048' class=' answer'><span>Marginal VaR describes the change in total VaR resulting from a $1 change in the value of the asset in question.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-46' style=';'><div id='questionWrap-46'  class='   watupro-question-id-214482'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>46. <\/span>If the marginal probabilities of default for a corporate bond for years 1, 2 and 3 are 2%, 3% and 4% respectively, what is the cumulative probability of default at the end of year 3?<\/div><input type='hidden' name='question_id[]' id='qID_46' value='214482' \/><input type='hidden' id='answerType214482' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214482[]' id='answer-id-855049' class='answer   answerof-214482 ' value='855049'   \/><label for='answer-id-855049' id='answer-label-855049' class=' answer'><span>8.74%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214482[]' id='answer-id-855050' class='answer   answerof-214482 ' value='855050'   \/><label for='answer-id-855050' id='answer-label-855050' class=' answer'><span>9.58%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214482[]' id='answer-id-855051' class='answer   answerof-214482 ' value='855051'   \/><label for='answer-id-855051' id='answer-label-855051' class=' answer'><span>9.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214482[]' id='answer-id-855052' class='answer   answerof-214482 ' value='855052'   \/><label for='answer-id-855052' id='answer-label-855052' class=' answer'><span>91.26%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-47' style=';'><div id='questionWrap-47'  class='   watupro-question-id-214483'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>47. <\/span>A risk management function is best organized as:<\/div><input type='hidden' name='question_id[]' id='qID_47' value='214483' \/><input type='hidden' id='answerType214483' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214483[]' id='answer-id-855053' class='answer   answerof-214483 ' value='855053'   \/><label for='answer-id-855053' id='answer-label-855053' class=' answer'><span>integrated with the risk taking functions as risk management should be a pervasive activity carried out at all levels of the organization.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214483[]' id='answer-id-855054' class='answer   answerof-214483 ' value='855054'   \/><label for='answer-id-855054' id='answer-label-855054' class=' answer'><span>report independently of the risk taking functions<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214483[]' id='answer-id-855055' class='answer   answerof-214483 ' value='855055'   \/><label for='answer-id-855055' id='answer-label-855055' class=' answer'><span>reporting directly to the traders, as to be closest to the point at which risks are being taken<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214483[]' id='answer-id-855056' class='answer   answerof-214483 ' value='855056'   \/><label for='answer-id-855056' id='answer-label-855056' class=' answer'><span>a part of the trading desks and other risk taking teams<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-48' style=';'><div id='questionWrap-48'  class='   watupro-question-id-214484'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>48. <\/span>Under the ISDA MA, which of the following terms best describes the netting applied upon the bankruptcy of a party?<\/div><input type='hidden' name='question_id[]' id='qID_48' value='214484' \/><input type='hidden' id='answerType214484' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214484[]' id='answer-id-855057' class='answer   answerof-214484 ' value='855057'   \/><label for='answer-id-855057' id='answer-label-855057' class=' answer'><span>Closeout netting<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214484[]' id='answer-id-855058' class='answer   answerof-214484 ' value='855058'   \/><label for='answer-id-855058' id='answer-label-855058' class=' answer'><span>Chapter 11<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214484[]' id='answer-id-855059' class='answer   answerof-214484 ' value='855059'   \/><label for='answer-id-855059' id='answer-label-855059' class=' answer'><span>Payment netting<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214484[]' id='answer-id-855060' class='answer   answerof-214484 ' value='855060'   \/><label for='answer-id-855060' id='answer-label-855060' class=' answer'><span>Multilateral netting<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-49' style=';'><div id='questionWrap-49'  class='   watupro-question-id-214485'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>49. <\/span>CreditRisk+, the actuarial model for calculating portfolio credit risk, is based upon:<\/div><input type='hidden' name='question_id[]' id='qID_49' value='214485' \/><input type='hidden' id='answerType214485' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214485[]' id='answer-id-855061' class='answer   answerof-214485 ' value='855061'   \/><label for='answer-id-855061' id='answer-label-855061' class=' answer'><span>the exponential distribution<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214485[]' id='answer-id-855062' class='answer   answerof-214485 ' value='855062'   \/><label for='answer-id-855062' id='answer-label-855062' class=' answer'><span>the normal distribution<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214485[]' id='answer-id-855063' class='answer   answerof-214485 ' value='855063'   \/><label for='answer-id-855063' id='answer-label-855063' class=' answer'><span>the Poisson distribution<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214485[]' id='answer-id-855064' class='answer   answerof-214485 ' value='855064'   \/><label for='answer-id-855064' id='answer-label-855064' class=' answer'><span>the log-normal distribution<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-50' style=';'><div id='questionWrap-50'  class='   watupro-question-id-214486'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>50. <\/span>Which of the following belong to the family of generalized extreme value distributions: <br \/>\r<br>I. Frechet <br \/>\r<br>II. Gumbel <br \/>\r<br>III. Weibull <br \/>\r<br>IV. Exponential<\/div><input type='hidden' name='question_id[]' id='qID_50' value='214486' \/><input type='hidden' id='answerType214486' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214486[]' id='answer-id-855065' class='answer   answerof-214486 ' value='855065'   \/><label for='answer-id-855065' id='answer-label-855065' class=' answer'><span>IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214486[]' id='answer-id-855066' class='answer   answerof-214486 ' value='855066'   \/><label for='answer-id-855066' id='answer-label-855066' class=' answer'><span>I, II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214486[]' id='answer-id-855067' class='answer   answerof-214486 ' value='855067'   \/><label for='answer-id-855067' id='answer-label-855067' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214486[]' id='answer-id-855068' class='answer   answerof-214486 ' value='855068'   \/><label for='answer-id-855068' id='answer-label-855068' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-51' style=';'><div id='questionWrap-51'  class='   watupro-question-id-214487'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>51. <\/span>If a borrower has a default probability of 12% over one year, what is the probability of default over a month?<\/div><input type='hidden' name='question_id[]' id='qID_51' value='214487' \/><input type='hidden' id='answerType214487' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214487[]' id='answer-id-855069' class='answer   answerof-214487 ' value='855069'   \/><label for='answer-id-855069' id='answer-label-855069' class=' answer'><span>12.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214487[]' id='answer-id-855070' class='answer   answerof-214487 ' value='855070'   \/><label for='answer-id-855070' id='answer-label-855070' class=' answer'><span>1.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214487[]' id='answer-id-855071' class='answer   answerof-214487 ' value='855071'   \/><label for='answer-id-855071' id='answer-label-855071' class=' answer'><span>2.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214487[]' id='answer-id-855072' class='answer   answerof-214487 ' value='855072'   \/><label for='answer-id-855072' id='answer-label-855072' class=' answer'><span>1.06%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-52' style=';'><div id='questionWrap-52'  class='   watupro-question-id-214488'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>52. <\/span>The frequency distribution for operational risk loss events can be modeled by which of the following distributions: <br \/>\r<br>I. The binomial distribution <br \/>\r<br>II. The Poisson distribution <br \/>\r<br>III. The negative binomial distribution <br \/>\r<br>IV. The omega distribution<\/div><input type='hidden' name='question_id[]' id='qID_52' value='214488' \/><input type='hidden' id='answerType214488' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214488[]' id='answer-id-855073' class='answer   answerof-214488 ' value='855073'   \/><label for='answer-id-855073' id='answer-label-855073' class=' answer'><span>I, II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214488[]' id='answer-id-855074' class='answer   answerof-214488 ' value='855074'   \/><label for='answer-id-855074' id='answer-label-855074' class=' answer'><span>I and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214488[]' id='answer-id-855075' class='answer   answerof-214488 ' value='855075'   \/><label for='answer-id-855075' id='answer-label-855075' class=' answer'><span>I, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214488[]' id='answer-id-855076' class='answer   answerof-214488 ' value='855076'   \/><label for='answer-id-855076' id='answer-label-855076' class=' answer'><span>I, II, III and IV<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-53' style=';'><div id='questionWrap-53'  class='   watupro-question-id-214489'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>53. <\/span>For a 10 year interest rate swap, what would be the worst time for a counterparty to default (in terms of the maximum likely credit exposure)<\/div><input type='hidden' name='question_id[]' id='qID_53' value='214489' \/><input type='hidden' id='answerType214489' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214489[]' id='answer-id-855077' class='answer   answerof-214489 ' value='855077'   \/><label for='answer-id-855077' id='answer-label-855077' class=' answer'><span>10 years<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214489[]' id='answer-id-855078' class='answer   answerof-214489 ' value='855078'   \/><label for='answer-id-855078' id='answer-label-855078' class=' answer'><span>Right after inception<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214489[]' id='answer-id-855079' class='answer   answerof-214489 ' value='855079'   \/><label for='answer-id-855079' id='answer-label-855079' class=' answer'><span>2 years<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214489[]' id='answer-id-855080' class='answer   answerof-214489 ' value='855080'   \/><label for='answer-id-855080' id='answer-label-855080' class=' answer'><span>7 years<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-54' style=';'><div id='questionWrap-54'  class='   watupro-question-id-214490'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>54. <\/span>A bank's detailed portfolio data on positions held in a particular security across the bank does not agree with the aggregate total position for that security for the bank . <br \/>\r<br>What data quality attribute is missing in this situation?<\/div><input type='hidden' name='question_id[]' id='qID_54' value='214490' \/><input type='hidden' id='answerType214490' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214490[]' id='answer-id-855081' class='answer   answerof-214490 ' value='855081'   \/><label for='answer-id-855081' id='answer-label-855081' class=' answer'><span>Data completeness<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214490[]' id='answer-id-855082' class='answer   answerof-214490 ' value='855082'   \/><label for='answer-id-855082' id='answer-label-855082' class=' answer'><span>Data integrity<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214490[]' id='answer-id-855083' class='answer   answerof-214490 ' value='855083'   \/><label for='answer-id-855083' id='answer-label-855083' class=' answer'><span>Auditability<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214490[]' id='answer-id-855084' class='answer   answerof-214490 ' value='855084'   \/><label for='answer-id-855084' id='answer-label-855084' class=' answer'><span>Data extensibility<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-55' style=';'><div id='questionWrap-55'  class='   watupro-question-id-214491'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>55. <\/span>Loss provisioning is intended to cover:<\/div><input type='hidden' name='question_id[]' id='qID_55' value='214491' \/><input type='hidden' id='answerType214491' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214491[]' id='answer-id-855085' class='answer   answerof-214491 ' value='855085'   \/><label for='answer-id-855085' id='answer-label-855085' class=' answer'><span>Unexpected losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214491[]' id='answer-id-855086' class='answer   answerof-214491 ' value='855086'   \/><label for='answer-id-855086' id='answer-label-855086' class=' answer'><span>Losses in excessof unexpected losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214491[]' id='answer-id-855087' class='answer   answerof-214491 ' value='855087'   \/><label for='answer-id-855087' id='answer-label-855087' class=' answer'><span>Both expected and unexpected losses<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214491[]' id='answer-id-855088' class='answer   answerof-214491 ' value='855088'   \/><label for='answer-id-855088' id='answer-label-855088' class=' answer'><span>Expected losses<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-56' style=';'><div id='questionWrap-56'  class='   watupro-question-id-214492'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>56. <\/span>For a hypotherical UoM, the number of losses in two non-overlapping datasets is 24 and 32 respectively. The Pareto tail parameters for the two datasets calculated using the maximum likelihood estimation method are 2 and 3 . <br \/>\r<br>What is an estimate of the tail parameter of the combined dataset?<\/div><input type='hidden' name='question_id[]' id='qID_56' value='214492' \/><input type='hidden' id='answerType214492' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214492[]' id='answer-id-855089' class='answer   answerof-214492 ' value='855089'   \/><label for='answer-id-855089' id='answer-label-855089' class=' answer'><span>2.57<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214492[]' id='answer-id-855090' class='answer   answerof-214492 ' value='855090'   \/><label for='answer-id-855090' id='answer-label-855090' class=' answer'><span>2.23<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214492[]' id='answer-id-855091' class='answer   answerof-214492 ' value='855091'   \/><label for='answer-id-855091' id='answer-label-855091' class=' answer'><span>3<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214492[]' id='answer-id-855092' class='answer   answerof-214492 ' value='855092'   \/><label for='answer-id-855092' id='answer-label-855092' class=' answer'><span>Cannot be determined<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-57' style=';'><div id='questionWrap-57'  class='   watupro-question-id-214493'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>57. <\/span>There are two bonds in a portfolio, each with a market value of $50m. The probability of default of the two bonds are 0.03 and 0.08 respectively, over a one year horizon. <br \/>\r<br>If the probability of the two bonds defaulting simultaneously is 1.4%, what is the default correlation between the two?<\/div><input type='hidden' name='question_id[]' id='qID_57' value='214493' \/><input type='hidden' id='answerType214493' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214493[]' id='answer-id-855093' class='answer   answerof-214493 ' value='855093'   \/><label for='answer-id-855093' id='answer-label-855093' class=' answer'><span>0%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214493[]' id='answer-id-855094' class='answer   answerof-214493 ' value='855094'   \/><label for='answer-id-855094' id='answer-label-855094' class=' answer'><span>100%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214493[]' id='answer-id-855095' class='answer   answerof-214493 ' value='855095'   \/><label for='answer-id-855095' id='answer-label-855095' class=' answer'><span>40%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214493[]' id='answer-id-855096' class='answer   answerof-214493 ' value='855096'   \/><label for='answer-id-855096' id='answer-label-855096' class=' answer'><span>25%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-58' style=';'><div id='questionWrap-58'  class='   watupro-question-id-214494'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>58. <\/span>For creditrisk calculations, correlation between the asset values of two issuers is often proxied with:<\/div><input type='hidden' name='question_id[]' id='qID_58' value='214494' \/><input type='hidden' id='answerType214494' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214494[]' id='answer-id-855097' class='answer   answerof-214494 ' value='855097'   \/><label for='answer-id-855097' id='answer-label-855097' class=' answer'><span>Credit migration matrices<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214494[]' id='answer-id-855098' class='answer   answerof-214494 ' value='855098'   \/><label for='answer-id-855098' id='answer-label-855098' class=' answer'><span>Transition probabilities<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214494[]' id='answer-id-855099' class='answer   answerof-214494 ' value='855099'   \/><label for='answer-id-855099' id='answer-label-855099' class=' answer'><span>Equity correlations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214494[]' id='answer-id-855100' class='answer   answerof-214494 ' value='855100'   \/><label for='answer-id-855100' id='answer-label-855100' class=' answer'><span>Default correlations<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-59' style=';'><div id='questionWrap-59'  class='   watupro-question-id-214495'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>59. <\/span>Which of the following decisions need to be made as part of laying down a system for calculating VaR: <br \/>\r<br>I. The confidence level and horizon <br \/>\r<br>II. Whether portfolio valuation is based upon a delta-gamma approximation or a full revaluation <br \/>\r<br>III. Whether the VaR is to be disclosed in the quarterly financial statements <br \/>\r<br>IV. Whether a 10 day VaR will be calculated based on 10-day return periods, or for 1-day and scaled to 10 days<\/div><input type='hidden' name='question_id[]' id='qID_59' value='214495' \/><input type='hidden' id='answerType214495' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214495[]' id='answer-id-855101' class='answer   answerof-214495 ' value='855101'   \/><label for='answer-id-855101' id='answer-label-855101' class=' answer'><span>I and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214495[]' id='answer-id-855102' class='answer   answerof-214495 ' value='855102'   \/><label for='answer-id-855102' id='answer-label-855102' class=' answer'><span>II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214495[]' id='answer-id-855103' class='answer   answerof-214495 ' value='855103'   \/><label for='answer-id-855103' id='answer-label-855103' class=' answer'><span>I, II and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214495[]' id='answer-id-855104' class='answer   answerof-214495 ' value='855104'   \/><label for='answer-id-855104' id='answer-label-855104' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-60' style=';'><div id='questionWrap-60'  class='   watupro-question-id-214496'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>60. <\/span>The standalone economic capital estimates for the three uncorrelated business units of a bank are $100, $200 and $150 respectively . <br \/>\r<br>What is the combined economic capital for the bank?<\/div><input type='hidden' name='question_id[]' id='qID_60' value='214496' \/><input type='hidden' id='answerType214496' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214496[]' id='answer-id-855105' class='answer   answerof-214496 ' value='855105'   \/><label for='answer-id-855105' id='answer-label-855105' class=' answer'><span>269<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214496[]' id='answer-id-855106' class='answer   answerof-214496 ' value='855106'   \/><label for='answer-id-855106' id='answer-label-855106' class=' answer'><span>72500<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214496[]' id='answer-id-855107' class='answer   answerof-214496 ' value='855107'   \/><label for='answer-id-855107' id='answer-label-855107' class=' answer'><span>21<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214496[]' id='answer-id-855108' class='answer   answerof-214496 ' value='855108'   \/><label for='answer-id-855108' id='answer-label-855108' class=' answer'><span>450<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-61' style=';'><div id='questionWrap-61'  class='   watupro-question-id-214497'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>61. <\/span>Which of the following risks and reasons justify the use of scenario analysis in operational risk modeling: <br \/>\r<br>I. Risks for which no internal loss data is available <br \/>\r<br>II. Risks that are foreseeable but have no precedent, internally or externally <br \/>\r<br>III. Risks for which objective assessments can be made by experts <br \/>\r<br>IV. Risks that are known to exist, but for which no reliable external or internal losses can be analyzed <br \/>\r<br>V. Reducing the complexity of having to fit statistical models to internal and external loss data <br \/>\r<br>VI. Managing the capital estimation process as to produce estimates in line with management's desired capital buffers.<\/div><input type='hidden' name='question_id[]' id='qID_61' value='214497' \/><input type='hidden' id='answerType214497' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214497[]' id='answer-id-855109' class='answer   answerof-214497 ' value='855109'   \/><label for='answer-id-855109' id='answer-label-855109' class=' answer'><span>I, II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214497[]' id='answer-id-855110' class='answer   answerof-214497 ' value='855110'   \/><label for='answer-id-855110' id='answer-label-855110' class=' answer'><span>I, II, III and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214497[]' id='answer-id-855111' class='answer   answerof-214497 ' value='855111'   \/><label for='answer-id-855111' id='answer-label-855111' class=' answer'><span>V<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214497[]' id='answer-id-855112' class='answer   answerof-214497 ' value='855112'   \/><label for='answer-id-855112' id='answer-label-855112' class=' answer'><span>All of the above<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-62' style=';'><div id='questionWrap-62'  class='   watupro-question-id-214498'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>62. <\/span>If EV be the expected value of a firm's assets in a year, and DP be the 'default point' per the KMV approach to credit risk, and be the standard deviation of future asset returns, then the distance-to-default is given by: <br \/>\r<br>A) <br \/>\r<br><br><img decoding=\"async\" width=73 height=33 id=\"\u56fe\u7247 33\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image008-25.jpg\"><br><br \/>\r<br>B) <br \/>\r<br><br><img decoding=\"async\" width=73 height=30 id=\"\u56fe\u7247 34\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image009-25.jpg\"><br><br \/>\r<br>C) <br \/>\r<br><br><img decoding=\"async\" width=81 height=14 id=\"\u56fe\u7247 37\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image010-22.jpg\"><br><br \/>\r<br>D) <br \/>\r<br><br><img decoding=\"async\" width=73 height=33 id=\"\u56fe\u7247 38\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2022\/03\/image011-22.jpg\"><br><\/div><input type='hidden' name='question_id[]' id='qID_62' value='214498' \/><input type='hidden' id='answerType214498' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214498[]' id='answer-id-855113' class='answer   answerof-214498 ' value='855113'   \/><label for='answer-id-855113' id='answer-label-855113' class=' answer'><span>Option A<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214498[]' id='answer-id-855114' class='answer   answerof-214498 ' value='855114'   \/><label for='answer-id-855114' id='answer-label-855114' class=' answer'><span>Option B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214498[]' id='answer-id-855115' class='answer   answerof-214498 ' value='855115'   \/><label for='answer-id-855115' id='answer-label-855115' class=' answer'><span>Option C<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214498[]' id='answer-id-855116' class='answer   answerof-214498 ' value='855116'   \/><label for='answer-id-855116' id='answer-label-855116' class=' answer'><span>Option D<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-63' style=';'><div id='questionWrap-63'  class='   watupro-question-id-214499'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>63. <\/span>Which of the following is not a credit event under ISDA definitions?<\/div><input type='hidden' name='question_id[]' id='qID_63' value='214499' \/><input type='hidden' id='answerType214499' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214499[]' id='answer-id-855117' class='answer   answerof-214499 ' value='855117'   \/><label for='answer-id-855117' id='answer-label-855117' class=' answer'><span>Restructuring<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214499[]' id='answer-id-855118' class='answer   answerof-214499 ' value='855118'   \/><label for='answer-id-855118' id='answer-label-855118' class=' answer'><span>Obligation accelerations<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214499[]' id='answer-id-855119' class='answer   answerof-214499 ' value='855119'   \/><label for='answer-id-855119' id='answer-label-855119' class=' answer'><span>Rating downgrade<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214499[]' id='answer-id-855120' class='answer   answerof-214499 ' value='855120'   \/><label for='answer-id-855120' id='answer-label-855120' class=' answer'><span>Failure to pay<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-64' style=';'><div id='questionWrap-64'  class='   watupro-question-id-214500'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>64. <\/span>The risk that a counterparty fails to deliver its obligation upon settlement while having received the leg owed to it is called:<\/div><input type='hidden' name='question_id[]' id='qID_64' value='214500' \/><input type='hidden' id='answerType214500' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214500[]' id='answer-id-855121' class='answer   answerof-214500 ' value='855121'   \/><label for='answer-id-855121' id='answer-label-855121' class=' answer'><span>Pre-settlement risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214500[]' id='answer-id-855122' class='answer   answerof-214500 ' value='855122'   \/><label for='answer-id-855122' id='answer-label-855122' class=' answer'><span>Credit risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214500[]' id='answer-id-855123' class='answer   answerof-214500 ' value='855123'   \/><label for='answer-id-855123' id='answer-label-855123' class=' answer'><span>Replacement risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214500[]' id='answer-id-855124' class='answer   answerof-214500 ' value='855124'   \/><label for='answer-id-855124' id='answer-label-855124' class=' answer'><span>Settlement risk<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-65' style=';'><div id='questionWrap-65'  class='   watupro-question-id-214501'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>65. <\/span>Which of the following is NOT true in respect of bilateral close out netting:<\/div><input type='hidden' name='question_id[]' id='qID_65' value='214501' \/><input type='hidden' id='answerType214501' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214501[]' id='answer-id-855125' class='answer   answerof-214501 ' value='855125'   \/><label for='answer-id-855125' id='answer-label-855125' class=' answer'><span>The net amount due is immediately receivable or payable<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214501[]' id='answer-id-855126' class='answer   answerof-214501 ' value='855126'   \/><label for='answer-id-855126' id='answer-label-855126' class=' answer'><span>All transactions are immediately closed out upon the occurrence of a credit event for either of the counterparties<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214501[]' id='answer-id-855127' class='answer   answerof-214501 ' value='855127'   \/><label for='answer-id-855127' id='answer-label-855127' class=' answer'><span>All transactions are netted against each other<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214501[]' id='answer-id-855128' class='answer   answerof-214501 ' value='855128'   \/><label for='answer-id-855128' id='answer-label-855128' class=' answer'><span>Transactions are separated by transaction type and immediately settled separately at each's replacement value<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-66' style=';'><div id='questionWrap-66'  class='   watupro-question-id-214502'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>66. <\/span>Which of the following techniques is used to generate multivariate normal random numbers that are correlated?<\/div><input type='hidden' name='question_id[]' id='qID_66' value='214502' \/><input type='hidden' id='answerType214502' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214502[]' id='answer-id-855129' class='answer   answerof-214502 ' value='855129'   \/><label for='answer-id-855129' id='answer-label-855129' class=' answer'><span>Simulation<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214502[]' id='answer-id-855130' class='answer   answerof-214502 ' value='855130'   \/><label for='answer-id-855130' id='answer-label-855130' class=' answer'><span>Markov process<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214502[]' id='answer-id-855131' class='answer   answerof-214502 ' value='855131'   \/><label for='answer-id-855131' id='answer-label-855131' class=' answer'><span>Cholesky decomposition of the correlation matrix<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214502[]' id='answer-id-855132' class='answer   answerof-214502 ' value='855132'   \/><label for='answer-id-855132' id='answer-label-855132' class=' answer'><span>Pseudo random number generator<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-67' style=';'><div id='questionWrap-67'  class='   watupro-question-id-214503'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>67. <\/span>If E denotes the expected value of a loan portfolio at the end on one year and U the value of the portfolio in the worst case scenario at the 99% confidence level, which of the following expressions correctly describes economic capital required in respect of credit risk?<\/div><input type='hidden' name='question_id[]' id='qID_67' value='214503' \/><input type='hidden' id='answerType214503' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214503[]' id='answer-id-855133' class='answer   answerof-214503 ' value='855133'   \/><label for='answer-id-855133' id='answer-label-855133' class=' answer'><span>E - U<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214503[]' id='answer-id-855134' class='answer   answerof-214503 ' value='855134'   \/><label for='answer-id-855134' id='answer-label-855134' class=' answer'><span>U\/E<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214503[]' id='answer-id-855135' class='answer   answerof-214503 ' value='855135'   \/><label for='answer-id-855135' id='answer-label-855135' class=' answer'><span>U<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214503[]' id='answer-id-855136' class='answer   answerof-214503 ' value='855136'   \/><label for='answer-id-855136' id='answer-label-855136' class=' answer'><span>E<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-68' style=';'><div id='questionWrap-68'  class='   watupro-question-id-214504'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>68. <\/span>If the default hazard rate for a company is 10%, and the spread on its bondsover the risk free rate is 800 bps, what is the expected recovery rate?<\/div><input type='hidden' name='question_id[]' id='qID_68' value='214504' \/><input type='hidden' id='answerType214504' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214504[]' id='answer-id-855137' class='answer   answerof-214504 ' value='855137'   \/><label for='answer-id-855137' id='answer-label-855137' class=' answer'><span>40.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214504[]' id='answer-id-855138' class='answer   answerof-214504 ' value='855138'   \/><label for='answer-id-855138' id='answer-label-855138' class=' answer'><span>20.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214504[]' id='answer-id-855139' class='answer   answerof-214504 ' value='855139'   \/><label for='answer-id-855139' id='answer-label-855139' class=' answer'><span>8.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214504[]' id='answer-id-855140' class='answer   answerof-214504 ' value='855140'   \/><label for='answer-id-855140' id='answer-label-855140' class=' answer'><span>0.00%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-69' style=';'><div id='questionWrap-69'  class='   watupro-question-id-214505'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>69. <\/span>What would be the correct order of steps to addressing data quality problems in an organization?<\/div><input type='hidden' name='question_id[]' id='qID_69' value='214505' \/><input type='hidden' id='answerType214505' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214505[]' id='answer-id-855141' class='answer   answerof-214505 ' value='855141'   \/><label for='answer-id-855141' id='answer-label-855141' class=' answer'><span>Assess the current state, design the future state, determine gaps and the actions required to be implemented to eliminate the gaps<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214505[]' id='answer-id-855142' class='answer   answerof-214505 ' value='855142'   \/><label for='answer-id-855142' id='answer-label-855142' class=' answer'><span>Articulate goals, do a 'strategy-fit' analysis and plan for action<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214505[]' id='answer-id-855143' class='answer   answerof-214505 ' value='855143'   \/><label for='answer-id-855143' id='answer-label-855143' class=' answer'><span>Design the future state, perform a gap analysis, analyze the current state and implement the future state<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214505[]' id='answer-id-855144' class='answer   answerof-214505 ' value='855144'   \/><label for='answer-id-855144' id='answer-label-855144' class=' answer'><span>Call in external consultants<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-70' style=';'><div id='questionWrap-70'  class='   watupro-question-id-214506'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>70. <\/span>Which of the following credit risk models relies upon theanalysis of credit rating migrations to assess credit risk?<\/div><input type='hidden' name='question_id[]' id='qID_70' value='214506' \/><input type='hidden' id='answerType214506' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214506[]' id='answer-id-855145' class='answer   answerof-214506 ' value='855145'   \/><label for='answer-id-855145' id='answer-label-855145' class=' answer'><span>KMV's EDF based approach<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214506[]' id='answer-id-855146' class='answer   answerof-214506 ' value='855146'   \/><label for='answer-id-855146' id='answer-label-855146' class=' answer'><span>The CreditMetrics approach<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214506[]' id='answer-id-855147' class='answer   answerof-214506 ' value='855147'   \/><label for='answer-id-855147' id='answer-label-855147' class=' answer'><span>The actuarial approach<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214506[]' id='answer-id-855148' class='answer   answerof-214506 ' value='855148'   \/><label for='answer-id-855148' id='answer-label-855148' class=' answer'><span>The contingent claims approach<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-71' style=';'><div id='questionWrap-71'  class='   watupro-question-id-214507'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>71. <\/span>Which of the following is closest to the description of a 'risk functional'?<\/div><input type='hidden' name='question_id[]' id='qID_71' value='214507' \/><input type='hidden' id='answerType214507' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214507[]' id='answer-id-855149' class='answer   answerof-214507 ' value='855149'   \/><label for='answer-id-855149' id='answer-label-855149' class=' answer'><span>A risk functional is the distribution thatmodels the severity of a risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214507[]' id='answer-id-855150' class='answer   answerof-214507 ' value='855150'   \/><label for='answer-id-855150' id='answer-label-855150' class=' answer'><span>A risk functional is a model distribution that is an approximation of the true loss distribution of a risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214507[]' id='answer-id-855151' class='answer   answerof-214507 ' value='855151'   \/><label for='answer-id-855151' id='answer-label-855151' class=' answer'><span>Risk functional refers to the Kolmogorov-Smirnov distance<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214507[]' id='answer-id-855152' class='answer   answerof-214507 ' value='855152'   \/><label for='answer-id-855152' id='answer-label-855152' class=' answer'><span>A risk functional assigns a penalty value for the difference between a model distribution and a risk's severity distribution<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-72' style=';'><div id='questionWrap-72'  class='   watupro-question-id-214508'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>72. <\/span>A bullet bond and an amortizing loan are issued at the same time with the same maturity and with the same principal . <br \/>\r<br>Which of these would have a greater credit exposure halfway through their life?<\/div><input type='hidden' name='question_id[]' id='qID_72' value='214508' \/><input type='hidden' id='answerType214508' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214508[]' id='answer-id-855153' class='answer   answerof-214508 ' value='855153'   \/><label for='answer-id-855153' id='answer-label-855153' class=' answer'><span>Indeterminate with the given information<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214508[]' id='answer-id-855154' class='answer   answerof-214508 ' value='855154'   \/><label for='answer-id-855154' id='answer-label-855154' class=' answer'><span>They would have identical exposure half way through their lives<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214508[]' id='answer-id-855155' class='answer   answerof-214508 ' value='855155'   \/><label for='answer-id-855155' id='answer-label-855155' class=' answer'><span>The amortizing loan<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214508[]' id='answer-id-855156' class='answer   answerof-214508 ' value='855156'   \/><label for='answer-id-855156' id='answer-label-855156' class=' answer'><span>The bullet bond<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-73' style=';'><div id='questionWrap-73'  class='   watupro-question-id-214509'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>73. <\/span>Which of the following are ordered correctly in the order of debt seniority in a bankruptcy situation? <br \/>\r<br>I. Equity, Subordinate debt, Senior debt <br \/>\r<br>II. Senior debt, Preferred stock, Equity <br \/>\r<br>III. Secured debt, Accounts payable, Preferred stock <br \/>\r<br>IV. Secured debt, DIP financing, Equity<\/div><input type='hidden' name='question_id[]' id='qID_73' value='214509' \/><input type='hidden' id='answerType214509' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214509[]' id='answer-id-855157' class='answer   answerof-214509 ' value='855157'   \/><label for='answer-id-855157' id='answer-label-855157' class=' answer'><span>II and III<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214509[]' id='answer-id-855158' class='answer   answerof-214509 ' value='855158'   \/><label for='answer-id-855158' id='answer-label-855158' class=' answer'><span>I and IV<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214509[]' id='answer-id-855159' class='answer   answerof-214509 ' value='855159'   \/><label for='answer-id-855159' id='answer-label-855159' class=' answer'><span>I<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214509[]' id='answer-id-855160' class='answer   answerof-214509 ' value='855160'   \/><label for='answer-id-855160' id='answer-label-855160' class=' answer'><span>II, III and IV<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-74' style=';'><div id='questionWrap-74'  class='   watupro-question-id-214510'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>74. <\/span>Which of the following is the most accurate description of EPE (Expected Positive Exposure):<\/div><input type='hidden' name='question_id[]' id='qID_74' value='214510' \/><input type='hidden' id='answerType214510' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214510[]' id='answer-id-855161' class='answer   answerof-214510 ' value='855161'   \/><label for='answer-id-855161' id='answer-label-855161' class=' answer'><span>The maximum average credit exposure over a period of time<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214510[]' id='answer-id-855162' class='answer   answerof-214510 ' value='855162'   \/><label for='answer-id-855162' id='answer-label-855162' class=' answer'><span>The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214510[]' id='answer-id-855163' class='answer   answerof-214510 ' value='855163'   \/><label for='answer-id-855163' id='answer-label-855163' class=' answer'><span>Weighted average of the future positive expected exposure across a time horizon.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214510[]' id='answer-id-855164' class='answer   answerof-214510 ' value='855164'   \/><label for='answer-id-855164' id='answer-label-855164' class=' answer'><span>The average of the distribution of positive exposures at a specified future date<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-75' style=';'><div id='questionWrap-75'  class='   watupro-question-id-214511'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>75. <\/span>The probability of default of a security over a 1 year period is 3% . <br \/>\r<br>What is the probability that it would not have defaulted at theend of four years from now?<\/div><input type='hidden' name='question_id[]' id='qID_75' value='214511' \/><input type='hidden' id='answerType214511' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214511[]' id='answer-id-855165' class='answer   answerof-214511 ' value='855165'   \/><label for='answer-id-855165' id='answer-label-855165' class=' answer'><span>11.47%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214511[]' id='answer-id-855166' class='answer   answerof-214511 ' value='855166'   \/><label for='answer-id-855166' id='answer-label-855166' class=' answer'><span>88.53%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214511[]' id='answer-id-855167' class='answer   answerof-214511 ' value='855167'   \/><label for='answer-id-855167' id='answer-label-855167' class=' answer'><span>12.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214511[]' id='answer-id-855168' class='answer   answerof-214511 ' value='855168'   \/><label for='answer-id-855168' id='answer-label-855168' class=' answer'><span>88.00%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-76' style=';'><div id='questionWrap-76'  class='   watupro-question-id-214512'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>76. <\/span>Which of the following cannot be used as an internal credit rating model to assess an individual borrower:<\/div><input type='hidden' name='question_id[]' id='qID_76' value='214512' \/><input type='hidden' id='answerType214512' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214512[]' id='answer-id-855169' class='answer   answerof-214512 ' value='855169'   \/><label for='answer-id-855169' id='answer-label-855169' class=' answer'><span>Distance to default model<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214512[]' id='answer-id-855170' class='answer   answerof-214512 ' value='855170'   \/><label for='answer-id-855170' id='answer-label-855170' class=' answer'><span>Probit model<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214512[]' id='answer-id-855171' class='answer   answerof-214512 ' value='855171'   \/><label for='answer-id-855171' id='answer-label-855171' class=' answer'><span>Logit model<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214512[]' id='answer-id-855172' class='answer   answerof-214512 ' value='855172'   \/><label for='answer-id-855172' id='answer-label-855172' class=' answer'><span>Altman's Z-score<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-77' style=';'><div id='questionWrap-77'  class='   watupro-question-id-214513'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>77. <\/span>Which of the following carry greater counterparty risk: a forward contract on a 10 year note, or a commercial paper carrying a AA credit rating with identical maturity and notional?<\/div><input type='hidden' name='question_id[]' id='qID_77' value='214513' \/><input type='hidden' id='answerType214513' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214513[]' id='answer-id-855173' class='answer   answerof-214513 ' value='855173'   \/><label for='answer-id-855173' id='answer-label-855173' class=' answer'><span>The forward contract has greater credit risk as its future gains are unknown<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214513[]' id='answer-id-855174' class='answer   answerof-214513 ' value='855174'   \/><label for='answer-id-855174' id='answer-label-855174' class=' answer'><span>Credit risk can not be compared in these terms<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214513[]' id='answer-id-855175' class='answer   answerof-214513 ' value='855175'   \/><label for='answer-id-855175' id='answer-label-855175' class=' answer'><span>They both carry the same credit risk<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214513[]' id='answer-id-855176' class='answer   answerof-214513 ' value='855176'   \/><label for='answer-id-855176' id='answer-label-855176' class=' answer'><span>The commercial paper has greater credit risk as the entire notional is outstanding<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-78' style=';'><div id='questionWrap-78'  class='   watupro-question-id-214514'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>78. <\/span>If the cumulative default probabilities of default for years 1 and 2 for a portfolio of credit risky assets is 5% and 15% respectively, what is the marginal probability of default in year 2 alone?<\/div><input type='hidden' name='question_id[]' id='qID_78' value='214514' \/><input type='hidden' id='answerType214514' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214514[]' id='answer-id-855177' class='answer   answerof-214514 ' value='855177'   \/><label for='answer-id-855177' id='answer-label-855177' class=' answer'><span>15.79%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214514[]' id='answer-id-855178' class='answer   answerof-214514 ' value='855178'   \/><label for='answer-id-855178' id='answer-label-855178' class=' answer'><span>10.53%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214514[]' id='answer-id-855179' class='answer   answerof-214514 ' value='855179'   \/><label for='answer-id-855179' id='answer-label-855179' class=' answer'><span>10.00%<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214514[]' id='answer-id-855180' class='answer   answerof-214514 ' value='855180'   \/><label for='answer-id-855180' id='answer-label-855180' class=' answer'><span>11.76%<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-79' style=';'><div id='questionWrap-79'  class='   watupro-question-id-214515'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>79. <\/span>For a loan portfolio, unexpected losses are charged against:<\/div><input type='hidden' name='question_id[]' id='qID_79' value='214515' \/><input type='hidden' id='answerType214515' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214515[]' id='answer-id-855181' class='answer   answerof-214515 ' value='855181'   \/><label for='answer-id-855181' id='answer-label-855181' class=' answer'><span>Credit reserves<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214515[]' id='answer-id-855182' class='answer   answerof-214515 ' value='855182'   \/><label for='answer-id-855182' id='answer-label-855182' class=' answer'><span>Economic credit capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214515[]' id='answer-id-855183' class='answer   answerof-214515 ' value='855183'   \/><label for='answer-id-855183' id='answer-label-855183' class=' answer'><span>Economic capital<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-214515[]' id='answer-id-855184' class='answer   answerof-214515 ' value='855184'   \/><label for='answer-id-855184' id='answer-label-855184' class=' answer'><span>Regulatory capital<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div style='display:none' id='question-80'>\n\t<div class='question-content'>\n\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading...\" title=\"Loading...\" 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