PRMIA 8009 Actual Free Exam Questions & Community Discussion

Exam Code/Number: 8009
Exam Name/Title: Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition
Certification Provider: PRMIA
Corresponding Certification: PRM

Exam Questions: 112
Updated On: Sep 07, 2026

Question #17

When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should ...

A. Respect local rules and regulations

B. Seek advice from a qualified party, being mindful of legal and confidentiality requirements

C. Ignore local rules and regulations

D. Modify the interpretation of local rules and regulations to meet the situation

Discussion 0

Correct Answer: B Vote an answer

Question #18

The Q4 2003 trading strategy of China Aviation Oil was

A. to buy puts and sell calls

B. to buy calls and sell puts

C. to sell puts and buy calls

D. to sell calls and buy puts

Discussion 0

Correct Answer: D Vote an answer

Question #19

Washington Mutual's acquisition of Long Beach Financial changed its business model and increased its credit loss profile because

A. the two banks were focussed in different markets

B. Long Beach Financial had losses which it hadn't realized at the time of the takeover

C. Of a general deterioration of credit quality generally

D. The resulting loss rate for Washington Mutual was more than 3 times higher than other mortgage lenders tracked by the FDIC

Discussion 0

Correct Answer: D Vote an answer

Question #20

Which of the following are PRMIA Governance Principles?
I. Independence of Key Parties
II. Disclosure and Transparency
III. Internal Validation
IV. Solvency

A. I, II and IV only

B. All are PRMIA Governance Principles

C. I, II and III only

D. I and II only

Discussion 0

Correct Answer: D Vote an answer

Question #21

Several clients, including Procter and Gamble took legal action against Bankers Trust, claiming Bankers Trust

A. sold them derivative products without properly advising them of the relevant risks

B. did not honour its contractual obligations to pay

C. hid profits

D. was involved in accounting fraud

Discussion 0

Correct Answer: A Vote an answer

Question #22

Unlike the case at Barings Bank, National Australia Bank:

A. Was not dealing in derivatives

B. Had a Board of Directors that was unaware of the true nature of trading activities

C. Had a risk management infrastructure that was credited with doing its' job well, despite the losses

D. Had a separation of duties between trading and back office

Discussion 0

Correct Answer: D Vote an answer

Question #23

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

A. All of the above

B. Attend at least one PRMIA chapter meeting per year

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

D. Vote in Board elections

Discussion 0

Correct Answer: C Vote an answer

Question #24

The problems in the Orange County case can best be characterized as failures related to:

A. All of the Above

B. Market Risk

C. Operational and Regulatory Compliance Risk

D. Credit Risk

Discussion 0

Correct Answer: B Vote an answer

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