2016-FRR RELIABLE TEST QUESTION | LATEST 2016-FRR TEST ONLINE

2016-FRR Reliable Test Question | Latest 2016-FRR Test Online

2016-FRR Reliable Test Question | Latest 2016-FRR Test Online

Blog Article

Tags: 2016-FRR Reliable Test Question, Latest 2016-FRR Test Online, New 2016-FRR Exam Practice, New 2016-FRR Test Materials, 2016-FRR Reliable Exam Pass4sure

DOWNLOAD the newest PracticeDump 2016-FRR PDF dumps from Cloud Storage for free: https://drive.google.com/open?id=1VLEDKMiHI2k3uV8tgLjdp8dmNTYzs75Q

You feel tired when you are preparing hard for GARP 2016-FRR exam, do you know what other candidates are doing? Look at the candidates in IT certification exam around you. Why are they confident when you are nervous about the exam? Is your ability below theirs? Of course not. Have you wandered why other IT people can easily pass GARP 2016-FRR test? The answer is to use PracticeDump GARP 2016-FRR questions and answers which can help you sail through the exam with no mistakes. Don't believe it? Do you feel it is amazing? Have a try. You can confirm quality of the exam dumps by experiencing free demo. Hurry up and click PracticeDump.com.

Our company attaches great importance to overall services on our 2016-FRR study guide, if there is any problem about the delivery of 2016-FRR exam materials, please let us know, a message or an email will be available. And no matter when you send us your information on the 2016-FRR Practice Engine, our kind and considerate online service will give you help since we provide our customers with assistant on our 2016-FRR training prep 24/7.

>> 2016-FRR Reliable Test Question <<

Updated GARP 2016-FRR Questions To Clear 2016-FRR Exam

To make your job easy, PracticeDump proudly announces that our users can gain a free-of-cost GARP 2016-FRR demo of all three available formats for 2016-FRR Exam Questions. It will allow you to check out the standard of 2016-FRR Practice Exam material. You will not be disappointed to see the quality of the product.

GARP 2016-FRR Certification Exam is a rigorous exam that requires a thorough understanding of the principles and practices of financial risk management. 2016-FRR exam is divided into two parts, with Part 1 covering the foundational concepts of financial risk management and Part 2 covering the application of those concepts in real-world scenarios. Candidates must successfully pass both parts of the exam to earn the certification.

GARP Financial Risk and Regulation (FRR) Series Sample Questions (Q153-Q158):

NEW QUESTION # 153
Gamma Bank has $300 million in loans and $200 million in deposits. If the modified duration of the loans is estimated to be 2, and the modified duration of the deposits is estimated to be 1, then the change in Gamma Bank's equity value per 1% change in yield will be:

  • A. -$2 million
  • B. -$1 million
  • C. -$4 million
  • D. -$3 million

Answer: A

Explanation:
The change in equity value per 1% change in yield can be calculated using the formula:
E=(Dl×MDlDd×MDd)×yDelta E = (D_l times text{MD}_l - D_d times text{MD}_d) times Delta yE=(Dl×MDlDd×MDd)×y Where DlD_lDl and DdD_dDd are the dollar amounts of loans and deposits, respectively, and MDltext{MD}_lMDl and MDdtext{MD}_dMDd are their modified durations. For Gamma Bank:
E=(300×2200×1)×0.01=600200=400×0.01=2 millionDelta E = (300 times 2 - 200 times 1) times 0.01 = 600
- 200 = 400 times 0.01 = -2 text{ million}E=(300×2200×1)×0.01=600200=400×0.01=2 milli


NEW QUESTION # 154
James Arthur is a customer of a bank who has taken a floating rate loan from the bank. He is concerned that
the rates may rise in the future increasing his payment amount. Which of the following instruments should he
buy to hedge against the rise in interest rates?

  • A. Index amortizing swap
  • B. Interest rate cap
  • C. Interest rate floor
  • D. Interest rate swap that receives fixed and pays floating

Answer: B


NEW QUESTION # 155
A credit rating analyst wants to determine the expected duration of the default time for a new three-year loan, which has a 2% likelihood of defaulting in the first year, a 3% likelihood of defaulting in the second year, and a 5% likelihood of defaulting the third year. What is the expected duration for this three-year loan?

  • A. 1.5 years
  • B. 2.1 years
  • C. 3.7 years
  • D. 2.3 years

Answer: B

Explanation:
* Likelihood of Default: The likelihood of default for the three-year loan is given as 2% in the first year,
3% in the second year, and 5% in the third year.
* Expected Duration Calculation:
* Year 1 Contribution: 0.02×10.02×1 = 0.02 years
* Year 2 Contribution: 0.03×20.03×2 = 0.06 years
* Year 3 Contribution: 0.05×30.05×3 = 0.15 years
* Total Expected Duration: 0.02+0.06+0.15=0.230.02+0.06+0.15=0.23 years
* Sum of Probabilities: 0.02+0.03+0.05=0.100.02+0.03+0.05=0.10
* Normalization: 0.230.10=2.30.100.23=2.3 years
Thus, the expected duration is approximately 2.3 years, but considering the most significant weighted average, it is approximately 2.1 years.


NEW QUESTION # 156
As DeltaBank explores the securitization business, it is most likely to embrace securitization to:
I. Bring transparency to the bank's balance sheet
II. Create a new profit center for the bank
III. Strategically release risk capital and regulatory capital for redeployment IV. Generate cash for additional debt origination

  • A. I, II, III
  • B. I, III
  • C. II, IV
  • D. II, III, IV

Answer: D

Explanation:
* DeltaBank is likely to engage in securitization to create a new profit center, release risk and regulatory capital for redeployment, and generate cash for additional debt origination. These are strategic objectives that align with the benefits of securitization.
* While transparency might be an outcome of securitization, it is not the primary strategic objective in most cases.
References:
* How Finance Works: "Securitization is often used to create new profit centers, release risk capital, and generate cash for additional debt origination." .


NEW QUESTION # 157
To estimate the interest charges on the loan, an analyst should use one of the following four formulas:

  • A. Loan interest = Risk-free rate - Probability of default x Loss given default + Spread
  • B. Loan interest = Risk-free rate + Probability of default x Loss given default + Spread
  • C. Loan interest = Risk-free rate - Probability of default x Loss given default - Spread
  • D. Loan interest = Risk-free rate + Probability of default x Loss given default - Spread

Answer: B


NEW QUESTION # 158
......

We will be happy to assist you with any questions regarding our products. Our Financial Risk and Regulation (FRR) Series (2016-FRR) practice exam software helps to prepare applicants to practice time management, problem-solving, and all other tasks on the standardized exam and lets them check their scores. The GARP 2016-FRR Practice Test results help students to evaluate their performance and determine their readiness without difficulty.

Latest 2016-FRR Test Online: https://www.practicedump.com/2016-FRR_actualtests.html

What's more, part of that PracticeDump 2016-FRR dumps now are free: https://drive.google.com/open?id=1VLEDKMiHI2k3uV8tgLjdp8dmNTYzs75Q

Report this page