Online Access Free GARP.2016-FRR.v2022-05-06.q121 Practice Test (Page 19)

2016-FRR Exam Question 86

A risk associate evaluating his current portfolio of assets and liabilities wants to determine how sensitive this
portfolio is to changes in interest rates. Which one of the following four metrics is typically used for this
purpose?

A.Macaulay duration

B.Effective duration

C.Duration of default

D.Modified duration

2016-FRR Exam Question 87

What is a difference between currency swaps and interest rate swaps?

A.Currency swaps allow banks and customers to obtain the risk/reward profile of long-term interest rates
without having to use long-term funding.

B.Currency swaps do not require the exchange of notional principal on maturity.

C.Currency swaps are OTC derivative contracts.

D.Currency swaps generate foreign exchange rate risk in addition to interest rate risk.

2016-FRR Exam Question 88

Which one of the following four statements about equity indices is INCORRECT?

A.Capitalization-weighted equity indices are not generally considered better to track the performance of an
overall market.

B.Equity indices are numerical calculations that reflect the performance of hypothetical equity portfolios.

C.Price-weighted equity indices give greater weight to shares trading at high prices.

D.Equity indices do not trade in cash form, rather, they are meant to track the overall performance of an
equity market.

2016-FRR Exam Question 89

Which one of the following four attributes would likely help a trader using exchange-traded options to
establish a leveraged position?

A.Higher degrees of exposure at less cash cost

B.Option positions have the same credit risks as a margined long forward.

C.Option positions have the same cash risks as a margined short futures purchase.

D.Unlimited losses for long option positions

2016-FRR Exam Question 90

Gamma Bank estimates its monthly portfolio volatility at 5%.The portfolio's annual volatility is closest to
which of the following?

A.30%

B.17%

C.35%

D.8%

Other Version: 97GARP.Surepassexams.2016-FRR.v2022-01-22.by.xaviera.121q.pdf; 5024GARP.2016-FRR.v2022-01-17.q125; 48GARP.Itpassleader.2016-FRR.v2021-08-29.by.yvette.108q.pdf

Latest Upload: 168ACSM.020-222.v2025-09-11.q48; 157VMware.5V0-31.23.v2025-09-10.q73; 131Oracle.1z0-915-1.v2025-09-10.q24; 160Citrix.1Y0-231.v2025-09-10.q87; 135SAP.C-THR85-2505.v2025-09-09.q29; 166Adobe.AD0-E727.v2025-09-09.q76; 130Oracle.1Z0-1123-25.v2025-09-09.q20; 135SAP.C_SIGPM_2403.v2025-09-08.q20; 254EXIN.ITIL.v2025-09-08.q161; 171BCS.PC-BA-FBA-20.v2025-09-08.q45

2016-FRR Exam Question 86

2016-FRR Exam Question 87

2016-FRR Exam Question 88

2016-FRR Exam Question 89

2016-FRR Exam Question 90

Download PDF File