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PRMIA 8004 real answers - PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

8004
  • Exam Code: 8004
  • Exam Name: PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics
  • Updated: Nov 11, 2025
  • Q & A: 112 Questions and Answers
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PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

1. According to the Group of 30 Report, deriving aggregate potential credit exposure for a counterparty by adding up the potential exposure of multiple transactions:

A) Captures portfolio effects but not tenor differences
B) Can easily reflect the impact of netting
C) Gives an accurate result in most cases
D) Overstates exposure in most cases


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

A) Foreign Central Banks will continue to sell their holdings of Fannie Mae and Freddie Mac securities
B) 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
C) The systemic risks still remain in the housing market because it increases the US government's debt
D) The cost of borrowing for house buyers will rise because of the risk premium now built into the cost of such a government guarantee


3. Metallgesellschaft's retail contracts were

A) unhedged
B) hedged using exchange-traded futures with longer maturities than the retail contracts
C) hedged using exchange-traded futures with shorter maturities than the retail contracts
D) fully hedged using exchange-traded futures of the same maturities as the retail contracts


4. 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) Ignore local rules and regulations
C) Modify the interpretation of local rules and regulations to meet the situation
D) Seek advice from a qualified party, being mindful of legal and confidentiality requirements


5. The Q4 2003 trading strategy of China Aviation Oil was

A) to buy calls and sell puts
B) to sell calls and buy puts
C) to buy puts and sell calls
D) to sell puts and buy calls


Solutions:

Question # 1
Answer: D
Question # 2
Answer: B
Question # 3
Answer: C
Question # 4
Answer: D
Question # 5
Answer: B

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