As LTCM started to have major losses, it compounded its problems by doing what?

• A.Trying to borrow more money from major money centre banks
• B.Returning capital to the general partners before others
• C.Unwinding its' more liquid trades thereby creating more liquidity risk overall
• D.Issuing Subordinated Debt

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PRMIA Governance Principles

• A.must be adhered to by all financial firms that are PRMIA members
• B.must be adhered to by all PRMIA member organizations
• C.is a set of recommendations based on research and best practice
• D.must be adhered to by all PRM charter holders

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Up until 2006, which of the following was not a primary driver for Washington Mutual's earning?

• A.The provision of fee based services to its customers.
• B.Deposit taking activities which generated net interest income.
• C.Complex derivative trades based on volatility indices.
• D.Lending to consumers and small businesses.

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The key people involved in the application of good governance and risk management must:
I be trustworthy
II be honest
III be approved by the local regulator
IV treat others fairly at all times

• A.I, II, and IV only
• B.I, II, III and IV above
• C.I, II, and III only
• D.III only

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Corporate Governance ...

• A.Eliminates risk to the greatest extent possible
• B.Is defined as that which is best practiced within an enterprise risk management framework, guided by the PRMIA Standards of Best Practice, Conduct and Ethics above all else
• C.Is defined as the assembled knowledge and wisdom of the collective stakeholders in the organization, set to maximize shareholder value
• D.Is defined as business decision making predicated on a belief in potential rewards, balanced with the knowledge, understanding and appreciation of the risk taken to pursue those potential rewards

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