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8008 Dumps With Exact Questions and Answers

Exact2pass Provides 100% Valid PRM Certification - Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition 8008 Exam dumps Questions and answers which can helps you to Pass Your Certification Exam in First Attempt.

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8008 Questions and Answers

Question # 1

Which of the following is the best description of the spread premium puzzle:

A.

The spread premium puzzle refers to observed default rates being much less than implied default rates, leading to lower credit bonds being relatively cheap when compared to their actual default probabilities

B.

The spread premium puzzle refers to dollar denominated non-US sovereign bonds being priced a at significant discount to other similar USD denominated assets

C.

The spread premium puzzle refers to AAA corporate bonds being priced at almost the same prices as equivalent treasury bonds without offering the same liquidity or guarantee as treasury bonds

D.

The spread premium puzzle refers to the moral hazard implicit in the monoline insurance market

Question # 2

Which of the following is not a risk faced by a bank from holding a portfolio of residential mortgages?

A.

The risk that mortgage interest rates will rise in the future

B.

The risk that the homeowners will pay the mortgage off before they are due

C.

The risk that the homeowners will not be able to pay their mortgage when they are due

D.

The risk that CDS spreads on the bank's debt will rise making funding more expensive

Question # 3

When pricing credit risk for an exposure, which of the following is a better measure than the others:

A.

Expected Exposure (EE)

B.

Notional amount

C.

Potential Future Exposure (PFE)

D.

Mark-to-market

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