Financial ris - Study guides, Class notes & Summaries

The risk that purchasing power will be lost while the loan is at the borrower's disposal - answer-Inflation risk The probability of loss from actions of governments, such as changes in tax laws or environmental regulations or expropriation of assets - answer-Political risk The risk of loss because of fluctuation in the relative value of foreign currency - answer-Exchange rate risk The risk of fluctuations in earnings before interest and taxes or in operating income when the firm uses...

FRM summary of the slides with lots of notes added and the book, because the slides alone are rather brief Passed 18/20

Risks of Investing - answer-Recession, Floating Interest Rate, Inflation/Deflation, Fx exposure (exchange rate), maturity risk, liquidity risk, new product, taxes Money Market vs. Capital Market Securities - answer-Money Market: <1 year, T-bills, currencies, short term bonds Capital Market: >1 year, stocks, 10 year government bonds Primary vs. Secondary Markets - answer-Primary Market: IPO, Investment Bank, Corporate Value, Brand Equity Secondary Market: NYSE, Nasdaq, All investors...

A reciprocal insurer typically has an administrator who manages the premiums collected from the group's members. This administrator is called a(n) -reciprocal commissioner -attorney general -attorney-in-fact -reciprocal director - ANSWERattorney-in-fact Which of the following financial products creates an instant estate, no matter when the date of death? -Mutual funds -Life Insurance -Certificate of Deposit -Deferred Annuity - ANSWERLife Insurance Who regulates an insurer's c...

Financial Risk Management (FRM) Exam With Correct Questions And Answers 2024

Futures prices are discovered by: - answer-when contracts are bought and sold The premise that makes hedging possible is cash and futures prices: - answer-generally change in the same direction by similar amounts Open interest refers to: - answer-total number of futures that have not been offset or fulfilled by delivery To hedge against an increase in prices, you would: - answer-purchase futures contracts The primary function of the exchanges is to: - answer-ensure the financial inte...

Which of the following best describes a baseline document? a. A PCI industry standard requiring a 15-minute session timeout b. Installation step recommendations from the vendor for an Active Directory server c. A network topography diagram of the Active Directory forest d. Security configuration settings for an Active Directory server :~~ D. A baseline is correct because it is a platform-specific rule related to the security configuration for an Active Directory server. Answers A, B, a...

Insurance is a contract by which one seeks to protect another from (BLANK) o :## Loss Which factor is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? o :## Race Agent/Producer o :## a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer Applicant (proposed insured) o :## a person applying for insurance Broker o :## an insurance pr...

NY state life, accident and health latest update with verified solutions Producer insurance agent, broker, consultant, reinsurance intermediary, excess lines broker, or any person who solicits or negotiates insurance person means an individual or business entity Home State district of columbia or any state territory of the United States in which an insurance producer maintains residence or principal place of business and is licensed to act as an insurance producer. Negotiate means the act of ...