Question 51. 51. Derivatives activities in end users are primarily conducted by

Question

Question 51. 51. Derivatives activities in end users are primarily conducted by (Points : 1)        the human resources group
       the sales staff
       the chief financial officer
       the board of directors
       the treasury group Question 52. 52. Which of the following best describes a company that practices enterprise risk management? (Points : 1)        interest rate risk and currency risk would be managed in unison
       a single department to manage risk
       it would manage insurance-related risks along with financial risk
       credit risk would be managed the same way as market risk
       operational risk would be managed Question 53. 53. The front office refers to (Points : 1)        the compliance office
       the traders who engage in derivatives transactions
       legal counsel
       the risk management function
       senior management Question 54. 54. FAS 133 defines effective hedging as (Points : 1)        a hedge with no basis risk
       a correctly priced hedge
       a perfect hedge
       a hedge that reduces 80 to 125 percent of the risk
       none of the above Question 55. 55. In which of the following activities is hedge accounting prohibited? (Points : 1)        hedging an overall portfolio as opposed to an individual transaction
       using short calls to protect a long asset
       using long puts to protect an asset
       hedging a long position with a short futures
       hedging a swap with a swaption Question 56. 56. Which of the following organizations recommends best practices for the investment management industry? (Points : 1)        PRMIA
       Risk Standards Working Group
       GARP
       G-30
       Financial Accounting Standards Board Question 57. 57. Which of the following activities does senior management not do? (Points : 1)        ensure that personnel are qualified
       ensure that controls are in place
       execute hedge transactions
       establish policies
       define roles and responsibilities Question 58. 58. The primary distinction between FAS 133 and IAS 39 is (Points : 1)        IAS 39 does not permit hedge accounting
       IAS 39 was adopted earlier than FAS 133
       IAS 39 applies only to publicly traded corporations
       IAS 39 applies to all financial assets and liabilities, not just derivatives
       none of the above Question 59. 59. Metalgesellschaft lost about $1.3 billion doing what? (Points : 1)        hedging short-term commitments with long-term options
       using crude oil futures options to hedge crude oil futures
       trading futures spreads on crude oil
       hedging fixed rate oil price commitments with swaptions
       none of the above Question 60. 60. "Independent risk management" means which of the following? (Points : 1)        that risk management of a firm is independent of its overall corporate policy decisions
       that the risk management function is provided by an outside consulting firm
       that the risk manager cannot be influenced by the traders
       that the risk manager is independent of the firm's senior managers
       none of the above Question 51. 51. Derivatives activities in end users are primarily conducted by (Points : 1)        the human resources group
       the sales staff
       the chief financial officer
       the board of directors
       the treasury group

Explanation / Answer

51. Derivatives activities in end users are primarily conducted by
       the treasury group

52. Which of the following best describes a company that practices enterprise risk management?
       operational risk would be managed

53. The front office refers to
       the traders who engage in derivatives transactions

54. FAS 133 defines effective hedging as
       a hedge that reduces 80 to 125 percent of the risk

55. In which of the following activities is hedge accounting prohibited

   hedging an overall portfolio as opposed to an individual transaction

56. Which of the following organizations recommends best practices for the investment management industry?

       PRMIA

57. Which of the following activities does senior management not do?
       ensure that controls are in place &
        define roles and responsibilities

58. The primary distinction between FAS 133 and IAS 39 is
       IAS 39 applies to all financial assets and liabilities, not just derivatives

59. Metalgesellschaft lost about $1.3 billion doing what?
       hedging fixed rate oil price commitments with swaptions
      

60. "Independent risk management" means which of the following?
       that the risk manager cannot be influenced by the traders
      

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.