8011 TEST DUMPS, 8011 RELIABLE EXAM CRAM

8011 Test Dumps, 8011 Reliable Exam Cram

8011 Test Dumps, 8011 Reliable Exam Cram

Blog Article

Tags: 8011 Test Dumps, 8011 Reliable Exam Cram, 8011 Valid Test Tutorial, Reliable 8011 Test Guide, 8011 Latest Exam Papers

With the high pass rate as 98% to 100%, we are confident to claim that our high quality and high efficiency of our 8011 exam guide is unparalleled in the market. We provide the latest and exact 8011 practice quiz to our customers and you will be grateful if you choose our 8011 Study Materials and gain what you are expecting in the shortest time. Besides, you have the chance to experience the real exam in advance with the Software version of our 8011 practice materials.

The Credit and Counterparty Manager (CCRM) Certificate Exam certification program is PCAOB-compliant and follows the highest ethical standards, ensuring credibility, reliability, and accountability. PRMIA expects accredited professional with the CCRM designation to copyright the ethical standards of the organization and act in the best interests of clients and stakeholders at all times. Credit and Counterparty Manager (CCRM) Certificate Exam certification is also regularly updated to reflect relevant changes in the industry.

PRMIA, or the Professional Risk Managers' International Association, is a global organization dedicated to advancing the risk management profession through education, networking, and advocacy. One of the key offerings of PRMIA is its certification program, which includes the Credit and Counterparty Manager (CCRM) Certificate. The CCRM is a comprehensive exam that tests candidates' knowledge of credit risk and counterparty risk management.

>> 8011 Test Dumps <<

Free PDF PRMIA 8011 Unparalleled Test Dumps

Many students often feel that their own gains are not directly proportional to efforts in their process of learning. This is because they have not found the correct method of learning so that they often have low learning efficiency. If you have a similar situation, we suggest you try 8011 practice materials. 8011 test guide is compiled by experts of several industries tailored to 8011 exam to help students improve their learning efficiency and pass the exam in the shortest time. Experts conducted detailed analysis of important test sites according to the examination outline, and made appropriate omissions for unimportant test sites. At the same time, 8011 Exam Dump made a detailed description of all the incomprehensible knowledge points through examples, forms, etc., so that everyone can easily understand.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q106-Q111):

NEW QUESTION # 106
For a corporate bond, which of the following statements is true:
I. The credit spread is equal to the default rate times the recovery rate II. The spread widens when the ratings of the corporate experience an upgrade III. Both recovery rates and probabilities of default are related to the business cycle and move in opposite directions to each other IV. Corporate bond spreads are affected by both the risk of default and the liquidity of the particular issue

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

Answer: C

Explanation:
The credit spread is equal to the default rate times the loss given default, or stated another way, default rate times (1 - recovery rate). It is not equal to the default rate times the recovery rate. Therefore statement I is not correct.
When ratings are upgraded by rating agencies, the spread contracts and not widen. Therefore statement II is not correct.
Both recovery rates and probabilities of default are related to the business cycle, and they move in opposite directions. Economic recessions witness an increase in the default rate and a decrease in the recovery rate, and economic expansions result in a decrease in the default rate and an increase in the recovery rates when default does happen. Therefore statement III is correct.
Bond spreads incorporate both the risk of default, but also considerations of liquidity in the case of corporate bonds. Hence statement IV is correct.


NEW QUESTION # 107
In estimating credit exposure for a line of credit, it is usual to consider:

  • A. 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.
  • B. the present value of the line of credit at the agreed rate of lending.
  • C. only the value of credit exposure currently existing against the credit line as the exposure at default.
  • D. 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.

Answer: D

Explanation:
Choice 'a' is the correct answer. Exposures such as those to a line of credit of which only a part (or none) may be drawn at the time of assessment present a difficulty when attempting to quantify credit risk. It is not correct to take the entire amount of the line as the exposure at default, and likewise the current exposure is likely to be too aggressively low a number to consider.
While the borrower has an information advantage in that he would be aware of the deterioration in credit standing before the bank and would probably draw cash prior to default, it is unlikely that the entire amount of the line of credit would be drawn in all cases. In some cases, none may be drawn. In other cases, the bank would become aware of the situation and curtail or cancel access to the credit line in a timely fashion.
Therefore a fixed proportion of existing credit lines is considered a reasonable approximation of the exposure at default against credit lines.


NEW QUESTION # 108
Which of the following is NOT true in respect of bilateral close out netting:

  • A. All transactions are netted against each other
  • B. The net amount due is immediately receivable or payable
  • C. All transactions are immediately closed out upon the occurrence of a credit event for either of the counterparties
  • D. Transactions are separated by transaction type and immediately settled separately at each's replacement value

Answer: D

Explanation:
Choice 'b', Choice 'c' and Choice 'a' correctly describe a bilateral close out netting as recommended by the ISDA. However Choice 'd' is not correct as it suggests individual settlement of transactions without netting which is the whole point of bilateral close out netting.


NEW QUESTION # 109
Which of the following methods cannot be used to calculate Liquidity at Risk?

  • A. Historical simulation
  • B. Monte Carlo simulation
  • C. Scenario analysis
  • D. Analytical or parametric approaches

Answer: D

Explanation:
Analytical or parametric approaches are not useful at all for liquidity at risk calculations because there are no neat distributions available to parameterize the large number of factors that affect the calculations of liquidity inflows and outflows. Historical simulations, Monte Carlo and scenario analysis (which can complement historical scenarios) are all valid choices


NEW QUESTION # 110
Which of the following are true:
I. Delta hedges need to be rebalanced frequently as deltas fluctuate with fluctuating prices.
II. Portfolio managers are right to focus on primary risks over secondary risks.
III. Increasing the hedge rebalance frequency reduces residual risks but increases transaction costs.
IV. Vega risk can be hedged using options.

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

Answer: B

Explanation:
Delta is non-linear with respect to prices for a number of securities such as bonds, options and other derivatives. It changes with changes in prices, and any hedge initially undertaken becomes quickly mismatched. Therefore delta hedges need to be managed quite actively and kept up-to-date. Therefore I is true.
Primary risks comprise most of the risk in a position, and therefore portfolio managers are right to focus on them over secondary risks. Therefore II is true.The greater the hedge rebalance frequency, the lower is the hedge mismatch at any point in time, and therefore residual risks would be lower. However, rebalancing hedges requires rebalance trades to be done, and these involve transaction costs. Generally, a reasonable balance needs to be struck between the frequency of rebalances (a lower frequency increases residual risk, but this residual risk is not directionally biased) and the costs of rebalancing. III is correct.Vega risk is the risk arising due to changes in prices due to changes in volatility. Options carry vega risk. Therefore any hedges against vega risks can only be obtained using other options positions. (Vega risk may also be hedged using other volatility based products, eg an OTC volatility swap, or a VIX futures type product.)


NEW QUESTION # 111
......

We are famous in this career not only for that we have the best quality of our 8011 exam materials, but also for that we can provide the first-class services on the 8011 study braindumps. Our services are available 24/7 for all visitors on our pages. You can put all your queries and get a quick and efficient response as well as advice of our experts on 8011 Certification Exam you want to take. Our professional online staff will attend you on priority.

8011 Reliable Exam Cram: https://www.actual4dumps.com/8011-study-material.html

Report this page