2016-FRR EXAM DUMPS - ACHIEVE BETTER RESULTS

2016-FRR Exam Dumps - Achieve Better Results

2016-FRR Exam Dumps - Achieve Better Results

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Tags: 2016-FRR Test Questions Fee, 2016-FRR Reliable Test Tips, 2016-FRR Top Dumps, 2016-FRR Reliable Test Materials, Reliable 2016-FRR Exam Materials

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Difficulty in writing GARP 2016-FRR

The difficulty level of writing the GARP 2016-FRR is high. The inquiries on the 2016-FRR are designed to assess your knowledge, skills, and practical abilities as a financial management professional. The passing score for this is also relatively high as compared with other certifications for professionals in this industry. This means that you have to have a good understanding of the subjects before you can attempt it. If you are not familiar with certain subjects, you should spend more time studying 2016-FRR exam dumps before scheduling a date to take 2016-FRR. It is advisable that you schedule multiple dates so that if one date does not work out for some reason, there will be others available to use instead. Edit your working schedule so that there are enough hours available to take the examination.

To prepare for the GARP FRR certification exam, candidates are encouraged to take advantage of a variety of study materials and resources. GARP offers a comprehensive study program that includes online courses, practice exams, and study guides. In addition, candidates can benefit from networking opportunities and professional development resources through GARP's membership program. With the right preparation and dedication, candidates can successfully pass the GARP FRR certification exam and take their careers to the next level.

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2016-FRR Reliable Test Tips & 2016-FRR Top Dumps

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The Global Association of Risk Professionals (GARP) is a non-profit organization that is committed to promoting and advancing the risk profession worldwide. One of the primary ways that GARP accomplishes this goal is through its certification program, which includes the Financial Risk and Regulation (FRR) Series. The FRR Series is designed to provide professionals with a deep understanding of financial risk management and regulatory requirements.

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q160-Q165):

NEW QUESTION # 160
What is generally true of the relationship between a bond's yield and it's time to maturity when the yield curve is upward sloping?

  • A. There is no relationship between the two
  • B. The longer the time to maturity of the bond, the lower its yield.
  • C. The longer the time to maturity of the bond, the higher its yield.
  • D. The shorter the time to maturity of the bond, the higher its yield.

Answer: C

Explanation:
When the yield curve is upward sloping, it typically indicates that longer-term bonds have higher yields compared to shorter-term bonds. This is due to the risks associated with longer time horizons, including inflation and interest rate risks, which require higher yields to compensate investors.


NEW QUESTION # 161
The value of which one of the following four option types is typically dependent on both the final price of its
underlying asset and its own price history?

  • A. Basket options
  • B. Power options
  • C. Stout options
  • D. Chooser options

Answer: C


NEW QUESTION # 162
PV01 is a method of describing interest rate risk. Which one of the following is a specific weakness of PV01?

  • A. PV01 is not very good at describing value change due to large changes in interest rates
  • B. PV01 requires a large number of calculations to produce a reasonable estimate of the effect of interest rate changes
  • C. PV01 underestimates the effect of small changes in interest rates
  • D. PV01 overestimates convexity risk

Answer: A

Explanation:
Comprehensive and Detailed In-Depth Explanation:
PV01 (Present Value of a 1 basis point change) measures the change in a portfolio's value for a 1 bp (0.01%) shift in interest rates, assuming a linear relationship. Its weakness is that it fails to capture non-linear effects (e.
g., convexity) for large interest rate changes, where the actual value change deviates from the linear approximation. Option A is incorrect as PV01 ignores convexity, not overestimates it. Option C is false as PV01 is accurate for small changes. Option D is incorrect as PV01 is computationally simple. GARP's FRR confirms this limitation in interest rate risk analysis.
Reference:GARP FRR Study Notes, Market Risk Section; BCBS, "Principles for the Management and Supervision of Interest Rate Risk," July 2004, para. 40-45.
Below is the third batch of 10 questions (363-372) formatted as requested, with verified answers and detailed explanations based on official Financial Risk and Regulation (FRR) documents, primarily referencing Basel frameworks from the Global Association of Risk Professionals (GARP) and Basel Committee on Banking Supervision (BCBS) guidelines. Typographical errors have been corrected, and answers have been double- checked for accuracy.


NEW QUESTION # 163
James manages a loans portfolio. He has to evaluate a large number of loans to choose which of them he will keep in the bank's books. Which one of the following four loans would he be most likely to sell to another bank?

  • A. Loan to a major customer who is also a director and a large owner.
  • B. Loan made to a highly risky borrower that is fully collateralized by the customer's deposits.
  • C. Loan to a borrower who has been delinquent previously, but now is performing as agreed.
  • D. Loan to a commercial customer with a good payment history and collateral.

Answer: B

Explanation:
James is managing a loans portfolio and must evaluate which loans to keep or sell. The most likely loan to be sold is one made to a highly risky borrower, even if it is fully collateralized by the customer's deposits. This is because, despite the collateral, the high risk associated with the borrower could lead to potential problems and higher costs for the bank in the future. Selling this loan transfers the risk to another bank and frees up resources for potentially more profitable and less risky loans.


NEW QUESTION # 164
What do option deltas measure?

  • A. The sensitivity of the option value to changes risk free interest rate.
  • B. The rate of change of the option value with respect to changes in the price of the underlying instrument.
  • C. The sensitivity of the option value to the passage of time.
  • D. The rate of change of the option value with respect to changes in volatility of the underlying instrument.

Answer: B

Explanation:
Option delta () is a measure used in finance to indicate the sensitivity of an option's price to the price of the underlying asset. Specifically, it represents the rate of change of the option's value with respect to changes in the price of the underlying instrument. It is a fundamental concept in options trading and risk management.
References:
* Standard definition from options theory.


NEW QUESTION # 165
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