2016-FRR Valid Test Tips, 2016-FRR Exam Blueprint
2016-FRR Valid Test Tips, 2016-FRR Exam Blueprint
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Tags: 2016-FRR Valid Test Tips, 2016-FRR Exam Blueprint, Guaranteed 2016-FRR Passing, Valid 2016-FRR Cram Materials, 2016-FRR Complete Exam Dumps
There are three different versions to meet customers’ needs you can choose the version that is suitable for you to study. If you buy our Financial Risk and Regulation (FRR) Series test torrent, you will have the opportunity to make good use of your scattered time to learn whether you are at home, in the company, at school, or at a metro station. If you choose our 2016-FRR study torrent, you can make the most of your free time, without using up all your time preparing for your exam. We believe that using our 2016-FRR Exam Prep will help customers make good use of their fragmentation time to study and improve their efficiency of learning. It will be easier for you to pass your exam and get your certification in a short time.
The Global Association of Risk Professionals (GARP) 2016-FRR Certification Exam is a globally recognized certification that validates an individual's knowledge and expertise in financial risk and regulation. 2016-FRR exam covers a wide range of topics, including credit risk, market risk, operational risk, and regulatory compliance. It is designed for professionals who work in risk management or regulatory compliance roles in financial institutions, including banks, insurance companies, and asset management firms.
Which documents are required, on the day of the GARP 2016-FRR Certification
Documents required of the day of the GARP 2016-FRR Certification are a GARP member card and your government-issued identification (copyright/copyright/National copyright), as elaborated by 2016-FRR exam dumps. A dump of GARP FRR certification queries with answers and the right answers will be posted here before you take it. Please remember to study them. Existing users like the Saien, lib, più, Che, Regex, Cosa, Httrack, and UNA have uploaded the full guides on GARP 2016-FRR Certification for candidates taking it online.
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GARP 2016-FRR Exam Blueprint | Guaranteed 2016-FRR Passing
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GARP 2016-FRR certification exam provides an excellent opportunity for professionals to enhance their expertise and show their commitment to the financial industry. It also helps employers identify top talent and ensure that they are meeting industry standards for risk management and regulatory compliance. With its focus on current industry trends, regulations and best practices, the GARP 2016-FRR Exam is a highly respected certification that is highly sought-after by financial industry professionals.
GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q209-Q214):
NEW QUESTION # 209
James Johnson bought a coupon bond yielding 4.7% for $1,000. Assuming that the price drops to $976 when yield increases to 4.71%, what is the PVBP of the bond.
- A. $26.
- B. $76.
- C. $976.
- D. $870.
Answer: A
Explanation:
The PVBP (Present Value of a Basis Point) can be calculated by taking the change in the bond's price and dividing it by the change in yield (expressed in basis points). Here, the bond's price drops from $1,000 to $976 when the yield increases from 4.7% to 4.71%, which is a 1 basis point increase. The change in price is $1,000
- $976 = $24. Therefore, the PVBP is $24 / 1 = $24.
NEW QUESTION # 210
Which one of the following four regulatory drivers for operational risk management includes risk and control requirements for financial statements in the United States?
- A. The Sarbanes-Oxley Act
- B. Solvency II
- C. The Markets in Financial Instruments Directive
- D. Basel II Accord
Answer: A
Explanation:
The Sarbanes-Oxley Act includes risk and control requirements for financial statements in the United States.
It mandates strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
This Act directly impacts operational risk management by setting standards for all U.S. public company boards, management, and public accounting firms.
NEW QUESTION # 211
Which one of the following four statements correctly describes an American call option?
- A. An American call option gives the buyer of that call option the right to buy the underlying instrument on
the expiry date. - B. An American call option gives the buyer of that call option the right to sell the underlying instrument on
any date up to and including the expiry date. - C. An American call option gives the buyer of that call option the right to buy the underlying instrument on
any date up to and including the expiry date. - D. An American call option gives the buyer of that call option the right to sell the underlying instrument on
the expiry date.
Answer: A
NEW QUESTION # 212
Which one of the following four parameters is NOT a required input in the Black-Scholes model to price a foreign exchange option?
- A. Discrete future stock prices
- B. Underlying interest rates
- C. Underlying exchange rates
- D. Option exercise price
Answer: A
Explanation:
The Black-Scholes model does not require discrete future stock prices as an input. Instead, it uses the current price of the underlying asset, the option's strike price, time to maturity, risk-free interest rate, and the volatility of the underlying asset. The model assumes that the price of the underlying asset follows a continuous stochastic process and not discrete intervals.
References:This non-requirement of discrete future stock prices in the Black-Scholes model is confirmed in the "How Finance Works" document, which details the necessary inputs for the model.
NEW QUESTION # 213
A multinational bank just bought two bonds each worth $10,000. One of the bonds pays a fixed interest of 5% semi-annually and the other pays LIBOR semi-annually. The six month LIBOR is at 5% currently. The risk manager of the bank is concerned about the sensitivity to interest rates. Which of the following statements are true?
- A. The given information is not enough to determine the sensitivity of the bond prices.
- B. The price of the bond paying floating interest is more sensitive to interest rates than the bond paying fixed interest.
- C. The price of the bond paying fixed interest is more sensitive to interest rates than the bond paying floating interest.
- D. Both bond prices are equally sensitive to interest rates.
Answer: C
Explanation:
A bond that pays fixed interest is more sensitive to changes in interest rates than a bond that pays floating interest. This is because the fixed interest bond's coupon payments are constant, and its price will fluctuate more as interest rates change. In contrast, the floating interest bond adjusts its coupon payments according to the current interest rates, making its price less sensitive to changes in the market interest rates.
NEW QUESTION # 214
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