We're so confident of our products that we provide no hassle product exchange.
GARP International Certificate in Banking Risk and Regulation (ICBRR) Sample Questions:
1. Which of the following statements about endogenous and exogenous types of liquidity are accurate?
I. Endogenous liquidity is the liquidity inherent in the bank's assets themselves.
II. Exogenous liquidity is the liquidity provided by the bank's liquidity structure to fund its assets and maturing liabilities.
III. Exogenous liquidity is the non-contractual and contingent capital supplied by investors to support the bank in times of liquidity stress.
IV.
Endogenous liquidity is the same as funding liquidity.
A) I, II, IV
B) I, II
C) I, III
D) II, III
2. Which one of the following four features is NOT a typical characteristic of futures contracts?
A) Fixed dates for delivery
B) Fixed notional amount per contract
C) Daily margin calls
D) Traded Over-the-counter only
3. Which one of the following four statements regarding commodity exchanges is INCORRECT?
A) Commodity markets are mot liquid than debt markets.
B) Banks trade in OTC contracts primarily to serve clients and facilitate client hedging and lending.
C) Customers rarely trade physical commodities with banks.
D) Banks have no natural direct exposure to commodities.
4. Over a long period of time DeltaBank has amassed a large equity option position. Which of the following risks should be considered in this transaction?
I. Counterparty risk on long OTC option positions
II. Counterparty risk on short OTC option positions
III. Counterparty risk on long exchange-traded option positions
IV.
Counterparty risk on short exchange-traded option positions
A) II, III, IV
B) I, II
C) I
D) II, III
5. Which of the following statements about the option gamma is correct? Gamma is the
I. Second derivative of the option value with respect to the volatility.
II. Percentage change in option value per percentage change in the price of the underlying instrument.
III. Second derivative of the value function with respect to the price of the underlying instrument.
IV.
Rate of change of the option delta with respect to changes in the underlying price.
A) II, III, and IV
B) I only
C) III and IV
D) II and III
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: C |
By June
