FRM II-CR Test 4
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

FRM II-CR Test 4

Postby » Tue Sep 16, 2014 7:23 am

Which of these statements is most closely associated with ‘Ring Fencing’?
Select one:
a. It is useful when a high quality firm is looking to enter into a low quality project
b. A subsidiary can be allowed to gain a higher credit rating than the parent company
c. The subsidiary can be close to bankruptcy even though the parent company is not
d. It is valid when the parent company holds only a small amount of equity interest in the

i find all the answer appropriate to ring fencing. Can any one please say why we cant have other choices as answer

Finance Junkie
Posts: 944
Joined: Wed Apr 09, 2014 6:28 am

FRM II-CR Test 4

Postby edupristine » Sat Sep 20, 2014 7:05 am

Ans b is looking most closely associated with 'Ring Fencing'. The question is asking for most closely. Please always post a source of question.

Return to “FRM Part II”



Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.