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NEW QUESTION: 1
With which person(s) should an anti-money laundering officer coordinate when implementing a new hire screening program?
A. Human Resources
B. Local Financial Intelligence Unit
C. Institution's Regulator
D. Internal Auditor
Answer: A

NEW QUESTION: 2
After submission to the regulatory authority, a substantial error was found in the application. In order to
resolve this issue, what should be done FIRST?
A. Verify the procedure in the regulation for the corrections.
B. Resubmit the entire package.
C. Contact the legal department and ask them how to proceed.
D. Inform upper management immediately.
Answer: A

NEW QUESTION: 3
Which of the following requires desktop software to synchronize contacts with the PC?
A. A vehicle GPS device
B. iPhone
C. Android tablet
D. Android
Answer: B

NEW QUESTION: 4
Which of the following introduces model error when basing VaR on a normal distribution with a static mean and standard deviation?
A. Heavy tails
B. Autocorrelation of squared returns
C. All of the above
D. Volatility clustering
Answer: C
Explanation:
Explanation
When VaR is based on an assumption of normality with a static mean and volatility, it means anything that violates these assumptions will introduce model error. Volatility clustering implies a non-static volatility.
Heavy tails imply non-normality of the shape of the distribution. Autocorrelation of squared returns implies that returns are not independent and identically distributed. Therefore all of these introduce model error.
Choice 'd' is therefore the correct answer.

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