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PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics (8004) - PRMIA Actual Exam Questions

Last updated on May 13, 2026

97% Exam Compliance
110 Total Questions
1
Question

MGRM's losses due to "stacking" started to increase when

Options
A

the oil market went from contango to backwardation

B

the oil market went from backwardation to contango

C

the oil market went from weak backwardation to strong backwardation

D

the oil market went from strong contango to weak contango

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2
Question

The Q4 2003 trading strategy of China Aviation Oil was

Options
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

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3
Question

As a result of the US government's intervention, which of the following is true?

Options
A

The cost of borrowing for Fannie Mae and Freddie Mac should decline because the government will be standing behind their debts and the buying and selling of mortgage debt will continue

B

The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee

C

The systemic risks still remain in the housing market because it increases the US government's debt

D

Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities

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4
Question

Employees shall be remunerated adequately for the roles that they perform, where 'adequately' is defined

Options
A

as being the market norm for similarly situated personnel in competitive organizations

B

using external references and benchmarks, and in a framework which is consistent with the type of risk-taking behavior expected of employees

C

using the risk reward profile for each business line in the organization

D

as commensurate with policies to attract and retain high income / revenue earners

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5
Question

John Smith wants to run for election to the Board of Directors of PRMI

Select 2
Options
A

To be nominated, he needs:

B

The backing of three other members

C

To go through a screening process conducted by the Nominations Committee

D

The backing of 6% of local members

E

The backing of five other members and to be serving on at least one PRMIA Committee

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