PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition : 8009 valid dumps

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Exam Code: 8009

Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition

Updated: Jan 18, 2025

Q & A: 112 Questions and Answers

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PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:

1. The hedging strategy employed by MG Refining & Marketing has been called:

A) A differential hedge
B) Dynamic hedging
C) A stacked hedge
D) Nothing because MG Refining & Marketing did not hedge its position


2. Which is NOT part of the guidance on Professional Conduct in the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct)?

A) Clearly inform all affected parties of any apparent or actual conflicts of interest
B) Provide advice that is clear and accurate
C) Know and abide by applicable rules and regulations
D) Report to the Regulator any departures from generally accepted methodology or practices


3. The "normal" credit loss profile of Washington Mutual was increased by which of the following?

A) By lowering its own credit underwriting standards
B) Catastrophic losses in its own credit card division
C) Acquisitions like Long Beach and Providian
D) The general downturn in the economy of the US


4. A PRMIA member is offered a highly paid work assignment on the condition that some aspects of assignment are not to be done according to PRMIA standards.
What should they do?

A) The PRMIA member should place the integrity of the risk management profession and users of risk management above their own personal interests, and refuse the work
B) Perform the assignment, noting in the final report the standards to which the assignment was done
C) Accept the assignment, produce and deliver two reports according to both standards
D) Accept the assignment, and prior to doing any work, report the conflict of interest to the organization's compliance department


5. PwC concluded that the accounting policy adopted by China Aviation Oil was incorrect because it

A) only took into account the time value of the option (which includes recognizing the time left to maturity of the option, the volatility of the spot price of the underlying commodity, interest rates and other factors)
B) took into account both the intrinsic value and the time value
C) only regarded the intrinsic value (i.e. the difference between the strike price and the forward price of the underlying commodity) as the fair value of its options
D) used neither the intrinsic value nor the time value


Solutions:

Question # 1
Answer: C
Question # 2
Answer: D
Question # 3
Answer: C
Question # 4
Answer: A
Question # 5
Answer: C

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