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: Nov 24, 2025
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Rated: 4.9 |
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Online Users: 780
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Question 1
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Financial regulators in a European country are considering banning trading in highlycomplex derivative instruments that are not settled through a centralized clearinghouse.This ban can result in:I. The value of the country's currency droppingII. Counterparties involved in trading of these derivative instruments failing to fulfill theirobligationsIII. The business model relying on these instruments failingIV. Certain activities becoming illegal
Answer: D
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Question 2
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US based Alpha Bank holds European corporate bonds and US inflation–indexed Treasurynotes in its investment portfolio. This investment portfolio is not exposed to changes inwhich of the following?
Answer: C
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Question 3
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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 4
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Which one of the following is a typical source of funding for a commercial banks assets?
Answer: A
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Which one of the following is a typical source of funding for a commercial banks assets?
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Question 5
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A bank considers issuing new capital to increase its Tier 1 capital levels. Which of thefollowing financial instruments would most likely to be considered?
Answer: B
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