Free ICBRR Exam Braindumps (page: 6)

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Counterparty credit risk assessment differs from traditional credit risk assessment in all of the following features EXCEPT:

  1. Exposures can often be netted
  2. Exposure at default may be negatively correlated to the probability of default
  3. Counterparty risk creates a two-way credit exposure
  4. Collateral arrangements are typically static in nature

Answer(s): D



All of the following performance statistics typically benefit country's creditworthiness EXCEPT:

  1. Low unemployment
  2. Low inflation
  3. High degrees of investment
  4. Low degrees of savings

Answer(s): D



A financial analyst is trying to distinguish credit risk from market risk. A $100 loan collateralized with $200 in stock has limited ___, but an uncollateralized obligation issued by a large bank to pay an amount linked to the long-term performance of the Nikkei 225 Index that measures the performance of the leading Japanese stocks on the Tokyo Stock Exchange likely has more ___ than ___.

  1. Legal risk; market risk; credit risk
  2. Market risk; market risk; credit risk
  3. Market risk; credit risk; market risk
  4. Credit risk, legal risk; market risk

Answer(s): B



Which one of the following four statements regarding counterparty credit risk is INCORRECT?

  1. Counterparty credit risk refers to the inability to realize gains in a contract with a counterparty due to its default.
  2. The exposure at default is variable due to fluctuations in swap valuations.
  3. The exposure at default can be negatively correlated to probability of default.
  4. Dynamic collateral provisions often increase counterparty risk considerably.

Answer(s): B



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Vey commented on May 27, 2023
highly appreciate for your sharing.
CAMBODIA
upvote

Vey commented on May 27, 2023
Highly appreciate for your sharing.
CAMBODIA
upvote