PRMIA PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics Sample Questions:

1. The early 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

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

A) Vote in Board elections
B) Adhere to the PRMIA Standards of Best Practice, Conduct and Ethics
C) Attend at least one PRMIA chapter meeting per year
D) All of the above

3. PRMIA is incorporated as:

A) A for-profit corporation
B) A non profit corporation with for profit subsidiaries
C) A charitable trust
D) A non-profit corporation

4. Bankgesellschaft Berlin's failures can be best characterised as

A) credit risk caused by a diversified portfolio of poor-quality loans
B) none of the above
C) credit risk caused by overexposure to the property market
D) both A and B

5. While doing a work assignment, a PRMIA member notices behaviour that is outside the ethical standards of their client organization and reports the matter to their immediate supervisor in the organization (if he or she wasn't the one engaging in such behaviour). The matter is neither progressed nor actioned.
The PRMIA member should:

A) stay silent on the basis that they have reported it
B) contact the Whistle-Blowing Hotline of the organization or, if none exits, to the PRMIA Ethics Committee for guidance and assistance
C) report the matter to the organization's Compliance Dept.
D) report the matter to their PRMIA chapter

Solutions: