Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

PRMIA 8010 Exam - Topic 1 Question 21 Discussion

Which of the following can be used to reduce credit exposures to a counterparty:1. Netting arrangements2. Collateral requirements3. Offsetting trades with other counterparties4. Credit default swaps
C) 1, 2 and 4
A) 1 and 2
B) 1, 2, 3 and 4
D) 3 and 4

PRMIA 8010 Exam - Topic 1 Question 21 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 21
Topic #: 1
[All 8010 Questions]

Which of the following can be used to reduce credit exposures to a counterparty:

1. Netting arrangements

2. Collateral requirements

3. Offsetting trades with other counterparties

4. Credit default swaps

Show Suggested Answer Hide Answer
Suggested Answer: C

Offsetting trades with other counterparties will not reduce credit exposure to a given counterparty. All other choices represent means of reducing credit risk. Therefore Choice 'c' is the correct answer.


by Arlene at Nov 20, 2022, 04:36 PM

Limited Time Offer

25%

Off

Get Premium 8010 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Joesph
8 months ago
Not sure about 4, seems risky to rely on swaps.
upvoted 0 times
...
Joesph
8 months ago
Agreed, netting and collateral are key!
upvoted 0 times
...
France
9 months ago
Wait, are credit default swaps really that effective?
upvoted 0 times
...
Lai
9 months ago
I think 3 is also important, can't overlook that!
upvoted 0 times
...
Mariann
9 months ago
Definitely 1 and 2! Those are standard practices.
upvoted 0 times
...
Roosevelt
9 months ago
I feel like options 1, 2, and 4 make sense together, but I’m not confident about including option 3. It seems less direct in reducing exposure.
upvoted 0 times
...
Belen
9 months ago
I practiced a similar question where netting and collateral were definitely included, but I’m uncertain if we discussed offsetting trades in detail.
upvoted 0 times
...
Murray
9 months ago
I think all four options can help reduce credit exposure, especially credit default swaps, but I need to double-check if offsetting trades are always effective.
upvoted 0 times
...
Lina
9 months ago
I remember netting arrangements and collateral requirements being key methods to reduce credit exposure, but I'm not sure about the offsetting trades part.
upvoted 0 times
...
Ethan
9 months ago
This question seems straightforward. I think the key is to focus on the Scrum Master's role in supporting Agile practices and SAFe principles.
upvoted 0 times
...
Lilli
9 months ago
I'm a bit confused by this question. I'm not entirely sure what a "discount base item" is or how it relates to the different processes listed. I'll need to review my notes to see if I can find more information about that.
upvoted 0 times
...
Roy
9 months ago
I think the key here is understanding how a WAF (Web Application Firewall) works to validate traffic before it reaches the web app. The options mention different filtering techniques, so I'll need to review those to determine the best approach.
upvoted 0 times
...
Simona
10 months ago
I feel pretty confident about this one. A Known Error is a Problem that has been resolved, with the cause and workaround identified. That's the definition that best fits the question, so I'll go with option C.
upvoted 0 times
...

Save Cancel