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PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:
1. John Smith wants to run for election to the Board of Directors of PRMIA. To be nominated, he needs:
A) To go through a screening process conducted by the Nominations Committee
B) The backing of five other members and to be serving on at least one PRMIA Committee
C) The backing of 6% of local members
D) The backing of three other members
2. As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:
A) Vote in Board elections
B) Attend at least one PRMIA chapter meeting per year
C) Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics
D) All of the above
3. What is (are) the lesson(s) of the Barings' failure?
A) Incentive plans have risk management implications
B) Front and back offices need to be independent
C) All of the above
D) Large profits can be an indicator of risk
4. The problems at Bankers Trust can best be characterized as failures related to:
A) Market Risk
B) All of the Above
C) Operational and Regulatory Compliance Risk
D) Credit Risk
5. Which of the following regarding Orange County is FALSE?
A) Bob Citron engaged in risky strategies to benefit personally
B) Bob Citron tried to "ride the yield curve"
C) Citron's losses were eventually exposed by massive margin calls
D) Bob Citron heavily leveraged his positions using repos
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: A |
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