Free 2016-FRR Exam Braindumps (page: 22)

Page 22 of 86

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 has 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, what would be the probability of a cumulative $40 million loss from these two mortgage borrowers?

  1. 0.01%
  2. 0.1%
  3. 1%
  4. 10%

Answer(s): C



From the bank's point of view, repricing the retail debt portfolio will introduce risks of fluctuations in:
I) Duration
II) Loss given default
III) Interest rates
IV) Bank spreads

  1. I
  2. II
  3. I, II
  4. III, IV

Answer(s): D



Foreign exchange rates are determined by various factors. Considering the drivers of exchange rates, which one of the following changes would most likely strengthen the value of the USD against other foreign currencies?

  1. The expected US inflation rate increases
  2. The global demand for US products decreases
  3. The economic performance in the US weakens
  4. The US current account surplus increases

Answer(s): D



When trading exotic options, one needs to consider the following risks:
I) Spot foreign exchange risks
II) Forward foreign exchange risks
III) Plain vanilla options risks
IV) Option-specific risks

  1. I, III
  2. II, III, IV
  3. I, II, IV
  4. I, II, III, IV

Answer(s): D



Page 22 of 86



Post your Comments and Discuss GARP 2016-FRR exam with other Community members:

Patric commented on October 20, 2024
The main thing about this exam dump is that the PDF is not free. And that is what I needed. So I had to pay for that but they offer 50% discount if you buy 2 or more exams.
Spain
upvote

Nathan commented on October 20, 2024
Using dumps are my last resort. And that is what I ended up using with this exam to pass. The exam is extremely difficult.
France
upvote

Marcellus Werifah commented on October 20, 2024
Who decides what is the correct in case of conflicts
UNITED STATES
upvote

Marcellus Werifah commented on October 20, 2024
Novice. Would need detailed explanation of any questions
UNITED STATES
upvote

Maya commented on October 20, 2024
It would be great if all answers are supported by reference link.
UNITED KINGDOM
upvote

Maya commented on October 20, 2024
good material
UNITED KINGDOM
upvote

Jay commented on October 20, 2024
Interesting selection of questions
GREECE
upvote

Vinod Kumar Ramaswamy commented on October 20, 2024
ITS VERY USEFUL
UNITED KINGDOM
upvote

Srikanth commented on October 20, 2024
Useful to prepare for the exam
Anonymous
upvote

Alex commented on October 20, 2024
This exam is super duper hard. So prepare for it guys. I only passed it because of these questions. God bless the owner of this site.
UNITED STATES
upvote

Petrious commented on October 20, 2024
The site provides good content and very reliable support team. Very quick to reply to questions.
GERMANY
upvote

Rashmi commented on October 20, 2024
Good Content
Anonymous
upvote

Manish commented on October 19, 2024
Hi it's a good initiative
Anonymous
upvote

Veronica commented on October 19, 2024
Brain dump questions are new to me...I'm not sure how to respond to this since I only answered a handful of questions
UNITED STATES
upvote

Kamran commented on October 19, 2024
Useful resource
UNITED STATES
upvote

AC commented on October 19, 2024
For a moment no, comment, still moving well
Anonymous
upvote

johnny commented on October 19, 2024
great insight
Anonymous
upvote

Marc commented on October 18, 2024
What the best way to learn terraform?
UNITED STATES
upvote

murad commented on October 18, 2024
Very helpful for certs
JORDAN
upvote

Jack commented on October 18, 2024
are these legit ?
Anonymous
upvote

Juan commented on October 18, 2024
From until what page number is enough to pass the certification?
Anonymous
upvote

Sandeep commented on October 18, 2024
This is very helpful for exam crack
UNITED STATES
upvote

Cheron commented on October 18, 2024
Before all i thank to you for your support. I passed my 2 exams I purchased with full version. I got 90% in one exam and in 2 exam I got 86%.
Anonymous
upvote

LA commented on October 18, 2024
Hi there, I have scheduled my EXAM and will share my experience if these questions are valid or not.
Anonymous
upvote

Mazin commented on October 18, 2024
Good questions
Anonymous
upvote

Test commented on October 18, 2024
Test are these teak answeres?
Anonymous
upvote

anonymous commented on October 17, 2024
can someone tell me if this is real questions
UNITED STATES
upvote

Steven commented on October 17, 2024
Questions are spot on and I passed the exam.
UNITED STATES
upvote

Ntombi commented on October 17, 2024
i find the questions helpful for my exam preparation
Anonymous
upvote

Ntombi commented on October 17, 2024
The questions help me to see if I understood what I have learned
Anonymous
upvote

ntombi commented on October 17, 2024
writing exam at the end of the month
Anonymous
upvote

Apvj commented on October 17, 2024
Need to update section 5 questions,it was all new question today in exam , unitl section 4 it was fine even though pattern of question changed
Anonymous
upvote

ghada commented on October 17, 2024
it helps a lot
Anonymous
upvote

John commented on October 17, 2024
Good mock exam
Anonymous
upvote