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PRMIA 8009 Practice Test Questions Answers

Exam Code: 8009 (Updated 110 Q&As)
Exam Name: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
Last Update: 15-Sep-2025
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  • Single Choice: 110 Q&A's

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    8009 Questions and Answers

    Question # 1

    Mary Jones wants the Bylaws of PRMIA to be changed so that people can't join PRMIA unless they meet a set of criteria she has devised with her colleagues. She can do this by getting which of the following approvals:

    A.

    The Board of Directors, but only if the Blue Ribbon Panel affirms the change

    B.

    The Board of Directors and a majority of the Members

    C.

    The Board of Directors alone

    D.

    34 of all Members

    Question # 2

    As a PRMIA member, you have certain responsibilities. Among these are the requirement(s) to:

    A.

    Vote in Board elections

    B.

    Attend at least one PRMIA chapter meeting per year

    C.

    Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics

    D.

    All of the above

    Question # 3

    According to LTCM managers:

    A.

    Stress Testing looked at the 12 biggest deals with each of their top 20 counterparties

    B.

    Stress Testing was not conducted

    C.

    Stress Testing was not necessary because their trades were hedged

    D.

    Stress Testing was elaborate, complex and conducted on their entire portfolio. It included the assumptions of a major breakdown in historical correlations

    Question # 4

    When supervising others, a PRMIA member must comply with

    A.

    PRMIA Standards

    B.

    the standards of the organization where the work is being performed

    C.

    his / her established personal standards of work approved in previous work situations

    D.

    local regulatory authority standards which may be less onerous than PRMIA standards

    Question # 5

    Which of the following is FALSE?

    A.

    Nick Leeson also ran the back office for his trading area

    B.

    Nick Leeson dealt in complex derivatives lacking transparency of pricing

    C.

    SIMEX made inquiries to Barings Bank about large margin calls on its positions

    D.

    Nick Leeson claimed to be running an arbitrage book

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