PRMIA 8004 Valid Dump : PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

8004 real exams

Exam Code: 8004

Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

Updated: Apr 23, 2024

Q & A: 112 Questions and Answers

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PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

1. For the sentence
"The organization should have at its disposal employees who have adequate _________, ________ and _______ to perform the tasks assigned to them", Choose the correct combination of words from the following options:

A) risk appetite, knowledge, expertise
B) track record, expertise, skills
C) experience, skills, previous successes
D) knowledge, skills, expertise


2. As LTCM started to have major losses, it compounded its problems by doing what?

A) Unwinding its' more liquid trades thereby creating more liquidity risk overall
B) Trying to borrow more money from major money centre banks
C) Returning capital to the general partners before others
D) Issuing Subordinated Debt


3. Which of the following was NOT a factor in the WorldCom collapse?

A) Accounting abuses
B) Over stating actual sales
C) Unfair pricing to customers
D) Failed corporate governance


4. When Fannie Mae and Freddie Mac were taken under US government conservatorship, which of the following was not included within their operating mandate?

A) The US government will provide capital as needed in return for preferred shares in the companies
B) The US government will buy mortgage-backed securities in the open market as needed
C) Fannie Mae and Freddie Mac will continue to buy home loans from banks to repackage them as mortgage-backed securities
D) There was a 2 year limit to the conservatorship


5. National Australia Bank and Barings cases are similar in that:

A) None of the above
B) Both A and B
C) Losses kept increasing while rogue trader(s) hid their positions
D) The back offices had inadequate procedures


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: C
Question # 4
Answer: D
Question # 5
Answer: B

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