8009 Exam Training Practice Tests (PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics

Question 1

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

Correct Answer: C

Question 2

The sensitivity analysis required under IFRS would have done what for China Aviation Oil?

A. Provided investors and analysts with insight into the dynamics of value changes, and the sensitivity of fair value to the underlying drivers of interest rates, exchange rates, and commodity prices B. None of the above C. Only provided the intrinsic value of its outstanding option positions D. Only provided the time value of its outstanding option position

Correct Answer: A

Question 3

The problems at Bankgesellschaft Berlin can best be characterized as failures related to:

A. Both B and C B. Operational Risk C. Market Risk D. Credit Risk

Correct Answer: A

Question 4

Which of the following is NOT part of the PRMIA Standards of Best Practice, Conduct and Ethics (Code of Conduct) Guidance on Ethical Behavior?

A. Take responsibility for your work B. Respect local customs C. Ensure globally accepted standards are adhered to at all costs D. Respect local laws and regulations

Correct Answer: C

Question 5

Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:
I. competitive market conditions
II. ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders III. ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators IV. reporting all such personnel to the local regulator

A. I and II only B. II, III and IV only C. I, II and IV only D. All of the above

Correct Answer: A

Question 6

The problems at Bankers Trust can best be characterized as failures related to:

A. All of the Above B. Market Risk C. Operational and Regulatory Compliance Risk D. Credit Risk

Correct Answer: C

Question 7

The Chair, Vice Chair, Secretary and Treasurer of the PRMIA Board of Directors are elected by:

A. The Regional Directors B. A two-thirds affirmative vote of all members C. The Blue Ribbon Advisory Panel D. All PRMIA Fellow Members

Correct Answer: A

PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition - 8009 Exam Practice Test