FREE PDF PRMIA - NEWEST 8011 - CREDIT AND COUNTERPARTY MANAGER (CCRM) CERTIFICATE EXAM VALID TEST REVIEW

Free PDF PRMIA - Newest 8011 - Credit and Counterparty Manager (CCRM) Certificate Exam Valid Test Review

Free PDF PRMIA - Newest 8011 - Credit and Counterparty Manager (CCRM) Certificate Exam Valid Test Review

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Tags: 8011 Valid Test Review, Online 8011 Training, 8011 Training Solutions, New 8011 Exam Fee, New 8011 Test Pass4sure

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PRMIA 8011 exam covers a range of topics related to credit and counterparty risk management, including credit risk measurement and management, counterparty risk management, credit derivatives, securitization, and credit portfolio management. 8011 exam is designed to test the candidate's understanding of the key concepts, principles, and practices of credit and counterparty risk management. The CCRM certificate is recognized globally and is highly valued by employers in the financial services industry. It is an excellent way for professionals to demonstrate their expertise and commitment to the field of credit and counterparty risk management.

PRMIA 8011: CCRM certificate is recognized globally and is highly regarded in the financial services industry. It is an essential certification for professionals who are involved in credit and counterparty risk management, including credit analysts, portfolio managers, risk managers, and traders.

PRMIA 8011 CCRM Certificate exam consists of 100 multiple-choice questions that must be completed within a three-hour timeframe. 8011 exam is computer-based and is offered at designated testing centers around the world. The passing score for the exam is 60%, and candidates who successfully pass the exam are awarded the PRMIA 8011 CCRM Certificate.

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Quiz 2025 PRMIA 8011: Credit and Counterparty Manager (CCRM) Certificate Exam Perfect Valid Test Review

The Credit and Counterparty Manager (CCRM) Certificate Exam (8011) practice exam software in desktop and web-based versions has a lot of premium features. One of which is the customization of Credit and Counterparty Manager (CCRM) Certificate Exam (8011) practice exams. The 8011 Practice Tests are specially made for the customers so that they can practice unlimited times and improve day by day and pass PRMIA 8011 certification exam with good grades.

PRMIA Credit and Counterparty Manager (CCRM) Certificate Exam Sample Questions (Q122-Q127):

NEW QUESTION # 122
A long position in a credit sensitive bond can be synthetically replicated using:

  • A. a short position in a treasury bond and a long position in a CDS
  • B. a long position in a treasury bond and a long position in a CDS
  • C. a short position in a treasury bond and a short position in a CDS
  • D. a long position in a treasury bond and a short position in a CDS

Answer: D

Explanation:
The correct answer is choice 'a'
A long position in a credit sensitive bond is equivalent to earning the risk free rate and the spread on the bond.
The risk free rate can be earned through a long position in a treasury bond, and the spread can be earned in the form of premiums on a CDS, which are received by the protectionseller, ie the party short a CDS contract.
Therefore we can get the same results as a long bond position using a combination of a long treasury bond and a short position in a CDS. Choice 'a' is the correct answer.


NEW QUESTION # 123
Which of the following introduces model error when basing VaR on a normal distribution with a static mean and standard deviation?

  • A. All of the above
  • B. Autocorrelation of squared returns
  • C. Heavy tails
  • D. Volatility clustering

Answer: A

Explanation:
When VaR is based on an assumption of normality with a static mean and volatility, it means anything that violates these assumptions will introduce model error. Volatility clustering implies a non-static volatility.
Heavy tails imply non-normality of the shape of the distribution. Autocorrelation of squared returns implies that returns are not independent and identically distributed. Therefore all of these introduce model error.
Choice 'd' is therefore the correct answer.


NEW QUESTION # 124
For a US based investor, what is the 10-day value-at risk at the 95% confidence level of a long spot position of EUR 15m, where the volatility of the underlying exchange rate is 16% annually. The current spot rate for EUR is 1.5. (Assume 250 trading days in a year).

  • A. 0
  • B. 1
  • C. 2
  • D. 3

Answer: B

Explanation:
The VaR for a spot FX position is merely a function of the standard deviation of the exchange rate. If V be the value of the position (in this case, EUR 15m x 1.5 = USD 22.5m), z the appropriate z value associated with the level of confidence desired, and # be the standard deviation of the portfolio, the VaR is given by Z#V.
In this case, the 10-day standard deviation is given by SQRT(10/250)*16%. Therefore the VaR is =1.
645*15*1.5*(16%*SQRT(10/250)) = USD 1.1844m. Choice 'c' is the correct answer.


NEW QUESTION # 125
The 99% 10-day VaR for a bank is $200mm. The average VaR for the past 60 days is $250mm, and the bank specific regulatory multiplier is 3. What is the bank's basic VaR based market risk capital charge?

  • A. $250mm
  • B. $600mm
  • C. $750mm
  • D. $200mm

Answer: C

Explanation:
The current Basel rules for the basic VaR based charge for market risk capital set market risk capital requirements as the maximum of the following two amounts:
1. 99%/10-day VaR,
2. Regulatory Multiplier x Average 99%/10-day VaR of the past 60 days
The 'regulatory multiplier' is a number between 3 and 4 (inclusive) calculated based on the number of 1% VaR exceedances in the previous 250 days, as determined by backtesting.
- If the number of exceedances is <= 4, then the regulatory multiplier is 3.
- If the number of exceedances is between 5 and 9, then the multiplier = 3 + 0.2*(N-4), where N is the number of exceedances.
- If the number of exceedances is >=10, then the multiplier is 4.
So you can see that in most normal situations the risk capital requirement will be dictated by the multiplier and the prior 60-day average VaR, because the product of these two will almost often be greater than the current 99% VaR.
The correct answer therefore is = max(200mm, 3*250mm) = $750mm.
Interestingly, also note that a 99% VaR should statistically be exceeded 1%*250 days = 2.5 times,which means if the bank's VaR model is performing as it should, it will still need to use a reg multiplier of 3.


NEW QUESTION # 126
A bank holds a portfolio of corporate bonds. Corporate bond spreads widen, resulting in a loss of value for the portfolio. This loss arises due to:

  • A. Counterparty risk
  • B. Credit risk
  • C. Liquidity risk
  • D. Market risk

Answer: D

Explanation:
The difference between the yields on corporate bonds and the risk free rate is called the corporate bond spread. Widening of the spread means that corporate bonds yield more, and their yield curve shifts upwards, driving down bond prices. The increase in the spread is a consequence of the market risk from holding these interest rate instruments, which is a part of market risk. If the reduction in the value of the portfolio were to be caused by a change in the credit rating of the bonds held, it would have been a loss arising due to credit risk.
Counterparty risk and liquidity risk are not relevant for this question. Therefore Choice 'c' is the correct answer.


NEW QUESTION # 127
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