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GREAT OPPORTUNITY FOR UNDER GRADUATES

Business
 * Podcasts
 * Business
 * Great Opportunity For Under Graduates
 * Guaranteed Success With SICBRR Exam 2022 Practice Test


GUARANTEED SUCCESS WITH SICBRR EXAM 2022 PRACTICE TEST


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00:00:00 00:00


If you are a student preparing for the ICBRR exam 2022, you have probably heard
of the ICBRR practice test. This practice test is designed for ICBRR exam
candidates who want to make sure that they have a thorough grasp of the
syllabus. This practice test simulates the real exam and helps candidates to
perfect their time management skills.


QUESTION: 1

An asset manager for a large mutual fund is considering forward exchange
positions traded in a clearinghouse system and needs to mitigate the risks
created as a result of this operation. Which of the following risks will be
created as a result of the forward exchange transaction?
A. Exchange rate risk

B. Exchange rate and interest rate risk

C. Credit risk

D. Exchange rate and credit risk

Answer: B


QUESTION: 2

Which one of the following statements about futures contracts is correct?
I. Futures contracts are subject to the same risks as the underlying
instruments.



II. Futures contracts have additional interest rate risk die to the future
delivery date.
III. Futures contracts traded in a clearinghouse system are exposed to credit
risk with numerous counterparties.
A. I



B. I, III

C. II, III

D. I, II, III

Answer: A


QUESTION: 3

A credit risk analyst is evaluating factors that quantify credit risk exposures.
The risk that the borrower would fail to make full and timely repayments of its
financial obligations over a given time horizon typically refers to:
A. Duration of default.

B. Exposure at default

C. Loss given default.
 
D. Probability of default

Answer: D


QUESTION: 4

Which one of the following four options does NOT represent a benefit of
compensating balances to the bank?
A. Compensating balances allow the bank to net some of the exposure they may
have in case of default, by taking funds from these specific deposit account one
the borrower defaults.

B. Since the compensating balances cannot be withdrawn at short notice, if at
all, they are not considered transaction accounts and are able to provide a
stable funding to the bank, reducing its reliance on more volatile external
inter- bank based funding sources.

C. Compensation balances influence the expected loss rate of the bank given the
default obligor and improve capital structure by controlling obligor type and
avoiding payment delays

D. Since the compensating balances reduce the next amount lent to the borrower,
the earned return on the loan is increased, further widening the bank's interest
rate margin and profitability

Answer: C


QUESTION: 5

A risk manager has a long forward position of USD 1 million but the option
portfolio decreases JPY 0.50 for every JPY 1 increase in his forward position.
At first approximation, what is the overall result of the options positions?
A. The options positions hedge the forward position by 25%.

B. The option positions hedge the forward position by 50%.

C. The option positions hedge the forward position by 75%.

D. The option positions hedge the forward position by 100%.

Answer: B




QUESTION: 6




Which one of the following four statements correctly defines an option's delta?

A. Delta measures the expected decline in option with time and is usually
expressed in years.

B. Delta measures the effect of 1 bp in interest rate change on the option price

C. Delta is the multiplier that best approximates the short-term change in the
value of an option.



D. Delta measures the impact of volatility on the price of an option.

Answer: C


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