CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. GARP
  5. 2016-FRR

Free 2016-FRR Exam Braindumps (page: 6)

Page 5 of 86
PDF with 342 Questions

Which one of the following four options correctly identifies the core difference between bonds and loans?

  1. These instruments receive a different legal treatment.
  2. These instruments have different pricing drivers.
  3. These instruments cannot be used to estimate credit capital under provisions of the Basel II Accord.
  4. These instruments are subject to different credit counterparty regulations.

Answer(s): A



Which of the following factors would typically increase the credit spread?
I) Increase in the probability of default of the issuer.
II) Decrease in risk premium.
III) Decrease in loss given default of the issuer.
IV) Increase in expected loss.

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

Answer(s): C



Which one of the following four mathematical option pricing models is used most widely for pricing European options?

  1. The Black model
  2. The Black-Scholes model
  3. The Garman-Kohlhagen model
  4. The Heston model

Answer(s): B



Which one of the following four formulas correctly identifies the expected loss for all credit instruments?

  1. Expected Loss = Probability of Default x Loss Given Default x Exposure at Default
  2. Expected Loss = Probability of Default x Loss Given Default + Exposure at Default
  3. Expected Loss = Probability of Default x Loss Given Default - Exposure at Default
  4. Expected Loss = Probability of Default x Loss Given Default / Exposure at Default

Answer(s): A






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

2016-FRR Exam Discussions & Posts