Exam style questions across every 8008 domain
Last Update 3 days ago
Total Questions : 362
Start with our free 8008 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real PRM Certification exam. Each 8008 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your PRMIA weak domains, see where you're losing marks, and build a focused study plan in minutes.
If P be the transition matrix for 1 year, how can we find the transition matrix for 4 months?
Which of the following is the most accurate description of EPE (Expected Positive Exposure):
When compared to a low severity high frequency risk, the operational risk capital requirement for a medium severity medium frequency risk is likely to be:
Which of the following statements are true in relation to Principal Component Analysis (PCA) as applied to a system of term structures?
I. The factor weights on the first principal component will show whether there is common trend in the system
II. The factors to be applied to principal components are obtained from eigenvectors of the correlation matrix
III. PCA is a standard method for reducing dimensionality in data when considering a large number of correlated variables
IV. The smallest absolute eigenvalues and their associated eigenvectors are the most useful for explaining most of the variation
A bank expects the error rate in transaction data entry for a particular business process to be 0.005%. What is the range of expected errors in a day within +/- 2 standard deviations if there are 2,000,000 such transactions each day?
Which of the following statements is the most appropriate description of feedback effects:
If a borrower has a default probability of 12% over one year, what is the probability of default over a month?
For a corporate bond, which of the following statements is true:
I. The credit spread is equal to the default rate times the recovery rate
II. The spread widens when the ratings of the corporate experience an upgrade
III. Both recovery rates and probabilities of default are related to the business cycle and move in opposite directions to each other
IV. Corporate bond spreads are affected by both the risk of default and the liquidity of the particular issue
Which of the following are considered counterparty based credit enhancements?
I. Collateral
II. Credit default swaps
III. Close out netting arrangements
IV. Guarantees
Who has the ultimate responsibility for the overall stress testing programme of an institution?
