Free GARP FRM-Part-2 Exam Questions
Absolute Free FRM-Part-2 Exam Practice for Comprehensive Preparation
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GARP FRM-Part-2 Exam Questions
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Provided By: GARP
- Exam: FRM Exam Part II
- Certification: GARP Certification
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Total Questions: 503
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Updated On: Nov 18, 2024
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Rated: 4.9 |
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Online Users: 1006
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Question 1
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Two financial institutions are facing different funding issues. Bank A, a mid-size regional bank is concerned that it has a shortfall in legal reserves for the day and is seeking an alternative to address this shortfall. Bank B, a small community bank, on the other hand, has recently experienced a much greater than anticipated shortfall in long term certificates of deposit (CD) renewals due to fierce local competition for retail deposits. Bank B has traditionally used stable CDs to fund its home mortgage portfolio. What is the most appropriate funding response of each of these two institutions considering timing and the availability of non-deposit funds?
Answer: D
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Two financial institutions are facing different funding issues. Bank A, a mid-size regional bank is concerned that it has a shortfall in legal reserves for the day and is seeking an alternative to address this shortfall. Bank B, a small community bank, on the other hand, has recently experienced a much greater than anticipated shortfall in long term certificates of deposit (CD) renewals due to fierce local competition for retail deposits. Bank B has traditionally used stable CDs to fund its home mortgage portfolio. What is the most appropriate funding response of each of these two institutions considering timing and the availability of non-deposit funds?
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Question 2
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A bank is assessing the impact of a new transaction on CVA and DVA. If the new transaction is negatively correlated to existing transactions, the impact will likely be a(n):
Answer: C
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A bank is assessing the impact of a new transaction on CVA and DVA. If the new transaction is negatively correlated to existing transactions, the impact will likely be a(n):
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Question 3
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Due to lack of available investment opportunities in public markets, a pension fund decided to hire an investment consultant to assess the potential for investing in illiquid markets in the US. Which of the following characteristics of illiquid markets in the US should the consultant present to the pension managers?
Answer: C
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Due to lack of available investment opportunities in public markets, a pension fund decided to hire an investment consultant to assess the potential for investing in illiquid markets in the US. Which of the following characteristics of illiquid markets in the US should the consultant present to the pension managers?
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Question 4
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Which of the following statements describes the best approach for liquidity transfer pricing?
Answer: A
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Which of the following statements describes the best approach for liquidity transfer pricing?
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Question 5
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Which of the following statements most accurately describes the effect of selling a loan without recourse?
Answer: B
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Which of the following statements most accurately describes the effect of selling a loan without recourse?