Most Recent GARP 2016-FRR Exam Dumps

Prepare for the GARP Financial Risk and Regulation (FRR) Series exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the GARP 2016-FRR exam and achieve success.

The questions for 2016-FRR were last updated on Apr 30, 2025.

Viewing page 1 out of 77 pages.
Viewing questions 1-5 out of 387 questions

Get All 387 Questions & Answers

Question No. 1

Which one of the four following statements describes a specific characteristic of risk and control self-assessments (RCSA) which distinguishes it from both control assessments and risk and control assessments?

ARCSA is conducted by a third party, perhaps audit, compliance or the Sarbanes-Oxley team.

BRCSA tests a control's effectiveness against set criteria and issues a pass/fail or level of effectiveness score.

CRCSA is subjective by nature.

DRCSA includes a risk assessment in addition to a control assessment.

Show Answer

Correct Answer: D

Question No. 2

Jack Richardson wants to compute the 1-month VaR of a portfolio with a market value of USD 10 million, with an average monthly return of 1% and average monthly standard deviation of 1.5%. What is the portfolio VaR at 99% confidence level?

Probability Cumulative Normal distribution

0.90 1.282

0.91 1.341

0.92 1.405

0.93 1.476

0.94 1.555

0.95 1.645

0.96 1.751

0.97 1.881

0.98 2.054

0.99 2.326

A164,500

B232,600

C246,750

D348,900

Show Answer

Correct Answer: B

Question No. 3

Gamma Bank provides a $100,000 loan to Big Bath retail stores at 5% interest rate (paid annually). The loan is collateralized with $55,000. The loan also has an annual expected default rate of 2%, and loss given default at 50%. In this case, what will the bank's exposure at default (EAD) be?

A$25,000

B$50,000

C$75,000

D$105,000

Show Answer

Correct Answer: C

Question No. 4

A customer of EtaBank, Alfred Fall, fell on the marble floors of the bank and sustained substantial injuries. Subsequently, he won a personal injury claim of $50,000 against EtaBank. How should EtaBank's operational loss data event information database categorize this event?

AThis event would qualify as 'Business Disruption and System Failures'.

BThis event would qualify as 'Employment Practices and Workplace Safety'.

CThis event would not qualify as an operational risk event.

DThis event would qualify as 'Legal Risk'.

Show Answer

Correct Answer: B

Question No. 5

Which one of the following four statements about regulatory capital for a bank is accurate?

ARegulatory capital is determined by rules imposed by an outside authority, such as a supervisor or central bank.

BRegulatory capital is the lowest level of economic capital the bank should have to meet regulatory requirement.

CRegulatory capital reflects the economic tradeoffs of the bank as accurately as the bank can represent them.

DRegulatory capital is less than the regulatory capital requirement.

Show Answer

Correct Answer: A

Unlock All Questions for GARP 2016-FRR Exam

Full Exam Access, Actual Exam Questions, Validated Answers, Anytime Anywhere, No Download Limits, No Practice Limits

Get All 387 Questions & Answers