Online Access Free ICBRR Exam Questions

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

• A.Currency swaps are OTC derivative contracts.
• B.Currency swaps do not require the exchange of notional principal on maturity.
• C.Currency swaps allow banks and customers to obtain the risk/reward profile of long-term interest rates without having to use long-term funding.
• D.Currency swaps generate foreign exchange rate risk in addition to interest rate risk.

By lowering the spread on lower credit quality borrowers, the bank will typically achieve all of the following outcomes EXCEPT:

• A.Lower probability of default
• B.Higher losses in case of default
• C.Rapid growth
• D.Aggressively courting of new business

To improve the culture and awareness of the operational risk, Gamma Bank's CRO decides to promote three activities within her organization. Which one of the following four activities is NOT typically used to develop an operational risk framework?

• A.Marketing
• B.Training
• C.Auditing
• D.Planning

In the United States, stock investors must comply with the Regulation T of the Federal Reserve Bank and may borrow up to ___ of the value of the securities from their brokers.

• A.30%
• B.40%
• C.60%
• D.50%

Which one of the following statements is an advantage of using implied volatility as an input when calculating VaR?

• A.Implied volatilities are better at predicting actual volatilities
• B.Current market data is used to determine implied volatilities, which makes them forward looking measures
• C.Implied volatility assumes volatilities are constant which makes it easy to implement in models.
• D.Loss probabilities from the standard normal distribution are used to compute implied volatilities, which makes it easy to compute the.