Exam Name: | Financial Risk and Regulation (FRR) Series | ||
Exam Code: | 2016-FRR Dumps | ||
Vendor: | GARP | Certification: | Financial Risk and Regulation |
Questions: | 342 Q&A's | Shared By: | enya |
Which one of the four following non-statistical risk measures are typically not used to quantify market risk?
Which one of the following four statements about regulatory capital for a bank is accurate?
By lowering the spread on lower credit quality borrowers, the bank will typically achieve all of the following outcomes EXCEPT:
ThetaBank has extended substantial financing to two mortgage companies, which these mortgage lenders use to finance their own lending. Individually, each of the mortgage companies have an exposure at default (EAD) of $20 million, with a loss given default (LGD) of 100%, and a probability of default of 10%. ThetaBank's risk department predicts the joint probability of default at 5%. If the default risk of these mortgage companies were modeled as independent risks, the actual probability would be underestimated by: