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CIMA P3 Dumps

Exam Code:
P3
Exam Name:
Risk Management
Last Update: Nov 30, 2025
339 Questions with Explanation
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Questions came word by
word from this dump

Risk Management Questions and Answers

Questions 1

SDF has a variable rate loan of $100 million on which it is paying interest of LIBOR + 2%.

SDF entered into a swap with CV bank to convert this to a fixed rate 7% loan. CV bank charges an annual commission of 0.3% for making this arrangement.

Calculate the net payment from SDF to CV bank at the end of the first year if LIBOR was 3% throughout the year.

Give your answer in $ million, to one decimal place.

Options:

Questions 2

ABC is an online retail chain which operates on a 24/7 basis It has been updating its Cyber Security processes and has implemented a centralised monitoring process to track activity through its web access portal

Which of the following activities will increase the awareness of its cyber security risk most effectively?

Options:

A.

ABC should monitor and record every device type used for access

B.

ABC should monitor and record every out of hours access

C.

ABC should monitor and record all failed access attempts.

D.

ABC should monitor and record every keystroke of every user.

Questions 3

Zia is an accountant and wishes to take out a Forward Rate Agreement (FRA) as a hedging instrument. The company treasurer has advised that a short-term interest rate (STIR) future would be better.

Which of the following is true of an STIR?

Options:

A.

A STIR can be tailored to the exact needs of the company.

B.

A STIR is flexible and the position can be closed quickly and easily.

C.

A STIR must be kept for the whole duration of the contract.

D.

If interest rates have gone down the price of the future will have fallen.

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