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  • Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
  • Last Update: 17-Apr-2024
  • Questions and Answers: 110
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8009 Questions and Answers

Question # 1

What was the most important loss for Bankers Trust?

A.

Money due to unfavourable market moves

B.

Loss of its' reputation due to actions seen as detrimental to their clients

C.

Loss of market share due to their licenses being revoked

D.

Time spent on legal proceedings in courts

Question # 2

The Bankers Trust Case Study is about:

A.

overexposure to the real estate market

B.

large losses at the proprietary trading desk

C.

reliance on thinly traded derivatives to hedge

D.

failure to guard its clients' best interests

Question # 3

As LTCM started to have major losses, it compounded its problems by doing what?

A.

Trying to borrow more money from major money centre banks

B.

Issuing Subordinated Debt

C.

Returning capital to the general partners before others

D.

Unwinding its' more liquid trades thereby creating more liquidity risk overall

Question # 4

The Chair of the PRMIA Board of Directors may hold the following offices:

A.

Parliamentarian

B.

Secretary

C.

Vice Chair

D.

Chair only

Question # 5

Which of the following was NOT a factor in the National Australia Bank case?

A.

Rogue traders

B.

Improper or insufficient Board-level communication regarding the importance of risk management and oversight

C.

Inadequate back office procedures

D.

Money laundering using foreign exchange trades for political leaders

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