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PRMIA Exam 8010 Topic 1 Question 11 Discussion
Actual exam question for
PRMIA's
8010 exam
Question #: 11
Topic #: 1
[All 8010 Questions]
Topic #: 1
Which of the following is not a tool available to financial institutions for managing credit risk:
Suggested Answer:
B
Collateral, limits to avoid credit exposure concentrations, termination rights based upon credit ratings, third party guarantees and credit derivatives are all tools or instruments that financial institutions use to manage their credit risk. A cumulative accuracy plot measures the accuracy of ratings, and is not a tool for managing credit risk. Therefore Choice 'b' represents the correct answer.
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