Free GARP 2016-FRR Exam Questions
Absolute Free 2016-FRR Exam Practice for Comprehensive Preparation
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GARP 2016-FRR Exam Questions
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Provided By: GARP
- Exam: Financial Risk and Regulation (FRR) Series
- Certification: GARP Certification
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Total Questions: 390
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Updated On: Jan 15, 2026
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Rated: 4.9 |
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Online Users: 780
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Question 1
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Which of the following statements presents an advantage of using risk and control selfassessments (RCSA) in the operational risk framework?I. RCSA provides very accurate scoring of risks and controls due to its subjective nature.II. RCSA program provides insight into risks that exist in a firm, but that may or may nothave occurred before.III. RCSA program can produce biased but transparent operational risk reporting.IV. RCSA program allows each department to take ownership of its own risks and controls.
Answer: B
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Question 2
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PV01 is a method of describing interest rate risk. Which one of the following is a specific weakness of PV01?
Answer: B
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Question 3
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Which one of the four following statements about drawdowns is correct?
Answer: C
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Which one of the four following statements about drawdowns is correct?
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Question 4
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Alpha Bank, a small bank,has a long position with larger BetaBank and has an identicalshort position with another larger bank GammaBank. Each large bank requires a 20% initialcollateral to support the trade. As prices fluctuate in either direction, one large bank willrequire additional collateral from the small bank, while the risk of loss to the other largebank will increase. By running the trades through a clearinghouse, the small bank canachieve all of the following objectives EXCEPT:
Answer: D
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Question 5
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Which one of the following four statements regarding the current value of a transaction andits purposes is INCORRECT?
Answer: B
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