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PRMIA Exam IV: Case Studies: Standards: Governance, Best Practices and Ethics - 2015 Edition Sample Questions:
1. With respect to the Purpose of Professional Standards, in the event of any difference in standards between local laws/rules and those of PRMIA, members must
A) comply with the higher standard under all circumstances
B) refer the matter to their supervisor
C) use their best judgment
D) abide by the applicable laws, rules, and regulations of PRMIA and any government and/or regulatory bodies
2. When Fannie Mae and Freddie Mac were taken under US government conservatorship, which of the following was not included within their operating mandate?
A) The US government will buy mortgage-backed securities in the open market as needed
B) Fannie Mae and Freddie Mac will continue to buy home loans from banks to repackage them as mortgage-backed securities
C) There was a 2 year limit to the conservatorship
D) The US government will provide capital as needed in return for preferred shares in the companies
3. John Smith wants to run for election to the Board of Directors of PRMIA. To be nominated, he needs:
A) The backing of 6% of local members
B) The backing of five other members and to be serving on at least one PRMIA Committee
C) The backing of three other members
D) To go through a screening process conducted by the Nominations Committee
4. In the case of National Australia Bank, which of the following was present?
A) Neither A nor B
B) A window of time between close of day for reporting purposes and back office checking that allowed traders to hide losses using fictitious trades
C) The Board received risk management information that was incorrect, incomplete or insufficiently detailed
D) Both A and B
5. Mary Jones wants the Bylaws of PRMIA to be changed so that people can't join PRMIA unless they meet a set of criteria she has devised with her colleagues. She can do this by getting which of the following approvals:
A) 34 of all Members
B) The Board of Directors alone
C) The Board of Directors and a majority of the Members
D) The Board of Directors, but only if the Blue Ribbon Panel affirms the change
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: C |


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