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8004 Verified Answers - 8004 Vce Exam

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    Free PDF Quiz 8004 - PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics –Efficient Verified Answers

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    PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions (Q28-Q33):

    NEW QUESTION # 28
    MGRM's losses due to "stacking" started to increase when

    • A. the oil market went from strong contango to weak contango
    • B. the oil market went from backwardation to contango
    • C. the oil market went from weak backwardation to strong backwardation
    • D. the oil market went from contango to backwardation

    Answer: B


    NEW QUESTION # 29
    Finite insurance is reinsurance which

    • A. transfers only a limited amount of risk at less cost than traditional reinsurance
    • B. transfers the total risk at less cost than traditional reinsurance
    • C. transfers the total risk at the usual reinsurance price
    • D. transfers only a limited amount of risk at the usual reinsurance price

    Answer: A


    NEW QUESTION # 30
    PRMIA Governance Principles

    • A. must be adhered to by all financial firms that are PRMIA members
    • B. is a set of recommendations based on research and best practice
    • C. must be adhered to by all PRMIA member organizations
    • D. must be adhered to by all PRM charter holders

    Answer: B


    NEW QUESTION # 31
    The condition where futures prices of an underlying asset are lower than cash (spot) prices is known as:

    • A. Contango
    • B. Conchacha
    • C. Backwardation
    • D. Reverse backwardation

    Answer: C


    NEW QUESTION # 32
    Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile because

    • A. the two banks were focussed in different markets
    • B. Long Beach Financial had losses which it hadn't realized at the time of the takeover
    • C. Of a general deterioration of credit quality generally
    • D. The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDIC

    Answer: D


    NEW QUESTION # 33
    ......

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