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ARM 401 Exam Practice Test Questions with Solutions, Quizzes of Credit and Risk Management

A set of practice test questions for arm 401, covering topics such as risk management, risk assessment, and risk identification. Each question includes a multiple-choice format with the correct answer highlighted. Useful for students preparing for the arm 401 exam, as it provides a comprehensive overview of key concepts and allows for self-assessment.

Typology: Quizzes

2024/2025

Available from 01/27/2025

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ARM 401 EXAM PRACTICE TEST QUESTIONS WITH
100% COMPLETE SOLUTIONS VERIFIED AND
ALREADY GRADED A+
"An organization practicing holistic risk management would assess the cost of raw materials and foreign
exchange risk under which one of the following quadrants of risk?
A. Strategic risk
B. Financial risk
C. Operational risk
D. Hazard risk - CORRECT ANSWER=> B"
"Risk maps differ from other risk assessment tools and techniques in which one of the following ways?
A. Risk maps dissect processes within the organization from input to output for the purpose of improving
them.
B. Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that illustrates
frequency and severity on vertical and horizontal axes.
C. Risk maps have the potential to identify both negative risks and opportunity risks.
D. Risk maps are able to quickly explore a vast number of possible outcomes based on large datasets. -
CORRECT ANSWER=> B"
"As a best practice, a risk register should be an interactive computer system. Which one of the following
individuals should be responsible for continually updating risk information?
A. Customer
B. Risk management professional
C. Risk owner
D. Chief executive officer - CORRECT ANSWER=> C"
"A tool developed at the risk owner level that links specific activities, processes, projects, or plans to a
list of identified risks and results of risk analysis and evaluation; and that is ultimately consolidated at the
enterprise level is called a
A. Risk report.
B. Risk map.
C. Risk matrix.
D. Risk register. - CORRECT ANSWER=> D"
"Which one of the following risk assessment tools has the potential to identify both negative risks and
opportunity risks?
A. Risk maps
B. Audits
C. Cause and effect analysis
D. Failure mode and effects analysis - CORRECT ANSWER=> B"
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Download ARM 401 Exam Practice Test Questions with Solutions and more Quizzes Credit and Risk Management in PDF only on Docsity!

ARM 401 EXAM PRACTICE TEST QUESTIONS WITH

100% COMPLETE SOLUTIONS VERIFIED AND

ALREADY GRADED A+

"An organization practicing holistic risk management would assess the cost of raw materials and foreign exchange risk under which one of the following quadrants of risk? A. Strategic risk B. Financial risk C. Operational risk

D. Hazard risk - CORRECT ANSWER=> B"

"Risk maps differ from other risk assessment tools and techniques in which one of the following ways? A. Risk maps dissect processes within the organization from input to output for the purpose of improving them. B. Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that illustrates frequency and severity on vertical and horizontal axes. C. Risk maps have the potential to identify both negative risks and opportunity risks. D. Risk maps are able to quickly explore a vast number of possible outcomes based on large datasets. -

CORRECT ANSWER=> B"

"As a best practice, a risk register should be an interactive computer system. Which one of the following individuals should be responsible for continually updating risk information? A. Customer B. Risk management professional C. Risk owner

D. Chief executive officer - CORRECT ANSWER=> C"

"A tool developed at the risk owner level that links specific activities, processes, projects, or plans to a list of identified risks and results of risk analysis and evaluation; and that is ultimately consolidated at the enterprise level is called a A. Risk report. B. Risk map. C. Risk matrix.

D. Risk register. - CORRECT ANSWER=> D"

"Which one of the following risk assessment tools has the potential to identify both negative risks and opportunity risks? A. Risk maps B. Audits C. Cause and effect analysis

D. Failure mode and effects analysis - CORRECT ANSWER=> B"

"Emma is a risk management professional at a chemical engineering organization. A new process is being designed and Emma has been told that all risks must be identified and eliminated during the design stage. Emma is a risk management professional, but not a chemical engineering expert. She has assembled a team of engineering experts and stakeholders to identify the risk associated with the process by subdividing the process into components and reviewing each component and then recommend solutions. Which one of the following team approaches to risk identification has Emma chosen? A. Delphi technique B. SWOT analysis C. Scenario analysis

D. HAZOP approach - CORRECT ANSWER=> D"

"Insurance Company (IC) sells its coverages through independent insurance agents. Independent agents represent several insurance companies. Tom, the president of IC, has learned that the independent agent who is the highest producer for IC is considering selling his agency. IC is considering acquiring the agency since Tom is concerned that if the agency is sold, IC may lose a substantial amount of business. Tom asked IC's risk manager to analyze the prospective purchase. The analysis revealed that the acquisition would likely secure most of IC's book of business with the agency but also revealed local competitors that would try to place the business as well. In addition, the analysis revealed the opportunity for IC to move some accounts currently placed with other insurers over to IC. Also, it was learned that a competitor expressed an interest in the agency acquisition. The analysis performed by the

risk manager is a - CORRECT ANSWER=> D"

"Murray Trucking is interested in evaluating which risk factors are most likely to lead to the costliest accidents. They are evaluating risk factors such as speed, weather conditions, driver experience, distance traveled, and gross vehicle weight. Which one of the following statistical measurements would be useful for the risk manager when calculating the probability of the different risk factors causing severe accidents? A. Telematics B. Inverse covariance C. Variance

D. Monte Carlo simulation - CORRECT ANSWER=> C"

"Blithe Manufacturing has experienced a drop in market share. The marketing department has come up with a way to differentiate their product in order to regain market share. Blithe has assembled a team of individuals representing different organizational functions to analyze both internal and external factors of the new product and decide whether or not it is feasible. Which one of the following team approaches to risk identification is Blithe using? A. Delphi technique B. HAZOP workshop C. SWOT analysis

D. Scenario analysis - CORRECT ANSWER=> C"

A. SWOT (strengths, weaknesses, opportunities, threats) analysis. B. Delphi technique. C. Facilitated workshop.

D. Hazard and operability (HAZOP) study. - CORRECT ANSWER=> D"

"SE Industries has identified windstorm as a risk. The risk manager has assembled a team to project the potential consequences of windstorm. The team includes individuals from various functions within the organization. Which one of the following team approaches to risk identification is SE Industries using? A. Delphi technique B. Scenario analysis C. SWOT analysis

D. HAZOP - CORRECT ANSWER=> B"

"The risk management department at Computer Hardware Company uses risk maps to graph and analyze the risks faced by the company. One area of special concern to the risk management team is the difference between residual risk and optimum risk. This difference represents A. The risk that cannot be altered and is retained by the firm. B. The risk treatment opportunity to further reduce risk. C. The risk that is handled, by default, through avoidance. D. The potential risk that the organization does not currently face, but could face if conditions change. -

CORRECT ANSWER=> B"

"Which one of the following occurs when individuals, departments, or teams from different areas work together to accomplish a shared organizational goal? A. Collaboration B. Coordination C. Cooperation

D. Communication - CORRECT ANSWER=> A"

"Which one of the following is a technique used to provide a visual perspective of an organization's risks and to prioritize those risks? A. Risk mapping B. Risk quadrants C. Risk register

D. SWOT analysis - CORRECT ANSWER=> A"

"James is the risk manager for a large manufacturing organization with six locations. Each location has a plant manager who is responsible for the operation of that location. James feels that the plant managers are in the best position to identify and measure risk at their locations. He wants them to own the risk. However, he is looking for a tool that will allow him to prioritize risk according to the potential effect on the organization. James wants an interactive tool that will adequately identify the organization's risks, and allow them to be measured based on likelihood and the level of risk to the organization. Which one of the following is the most appropriate tool for James? A. SWOT analysis

B. Risk map C. Organizational risk register

D. Facilitated workshop - CORRECT ANSWER=> C"

"Which one of the following is a major benefit that blockchain technology provides to holistic risk management? A. Because of their security, blockchains can eliminate the need to verify the accuracy of risk management data. B. Blockchain technology allows organizations to share data through wireless internet and networking services. C. Blockchains can monitor things such as heat, moisture, noise, and air quality. D. Blockchain technology can monitor driving habits by measuring acceleration, speed, braking, and

distance traveled. - CORRECT ANSWER=> A"

"Which one of the following statements is true regarding the use of risk registers with scenario models? A. The risk manager should complete a risk register for each location of the organization. B. An interactive computer system should be used for risk registers so they can be updated once a year. C. A risk register should record the likelihood of a scenario along with the consequences of associated risks. D. The likelihood of a risk register's scenario should not vary significantly among locations of the

organization. - CORRECT ANSWER=> C"

"Risk management professionals can use risk mapping to identify inherent risk and residual (current) level of risk. Inherent risk is important because the difference between inherent and residual risk provides a measure of: A. The effectiveness of the current risk treatment. B. The necessity of risk financing. C. Speculative risk.

D. Volatility. - CORRECT ANSWER=> A"

"Northeast Urban Properties owns and operates office buildings in New York, Boston, and Philadelphia. The risk manager decided to examine the impact of potential terrorist attacks on each building. For example, for the Philadelphia building, the risk manager examined attacks at three levels: scare (e.g. suspicious package), minor explosion or gas attack, and large-scale attack. For each level, the risk manager listed the risk owners, the risk quadrants impacted, the likelihood of attack, the consequence, the risk level, and the risk control measures that needed to be implemented. This information was summarized in a one-page chart. The chart the risk manager prepared is a A. Risk report with warning color code. B. Risk matrix with value at risk. C. Risk map with simulation.

D. Risk register with scenario model. - CORRECT ANSWER=> D"

"Erin is a project manager at Shelton Manufacturing. She is responsible for a major project that will require the collaboration of many different groups. Erin needs to motivate everyone from the sales force

safety was present at the majority of the plants. The team approach to risk identification Ashley employed is called A. Scenario analysis. B. HAZOP analysis. C. SWOT analysis.

D. The Delphi technique. - CORRECT ANSWER=> D"

"Brenda is the new risk manager at Telecom Company. She did a preliminary analysis to identify organizational risks. Brenda then scheduled a meeting of the organization's leaders, key employees, and other stakeholders. Brenda asked her assistant, Brian, to moderate the session since he is skilled in risk identification, and he is a skilled communicator as well. Brian encouraged brainstorming, and asked follow-up questions. After the session, Brenda and her risk management colleagues had a much deeper understanding of Telecom's risks. The technique that Brenda applied is called a A. Delphi technique session. B. Facilitated workshop. C. SWOT analysis.

D. Group-think. - CORRECT ANSWER=> B"

"A 5 Whys analysis is used primarily for problems involving A. Environmental factors. B. Technology. C. Human factors.

D. Construction. - CORRECT ANSWER=> C"

"The purpose of fault tree analysis is to A. Provide an opportunity to discover and correct any defects in a product or process while it is still in its early engineering phases. B. Project consequences of some failure of a system component. C. Quantify the probability of each possibility identified in the analysis. D. Identify the various ways of interrupting the sequence of events leading to system failure so that the

failure itself can be prevented. - CORRECT ANSWER=> D"

"Modifying the contact surface or basic structure that can be affected by installing breakaway highway light poles or requiring front and side airbags in automobiles to cushion occupants' impact is a basic strategy of the A. Techniques of operations review approach. B. Change analysis. C. Energy transfer theory.

D. Sequence of events theory. - CORRECT ANSWER=> C"

"Air-Freight Company wants to use failure mode and effects analysis (FMEA) to analyze its systems, subsystems, components, sub-assemblies, and parts. Level 1 is the overall system for shipping freight. Level 2 is the system segments, with the prime items (air freight hubs, schedulers, and logistics) designated as Level 3. Level 4 is the subsystems (local freight handlers, package sorters, etc.). Level 5 is

the hardware and parts (forklifts, conveyor belts, planes, and delivery vans, etc.). In FMEA, these various systems and subsystems are called A. Indenture levels. B. Risk priority levels. C. Critical levels.

D. Complexity levels. - CORRECT ANSWER=> A"

"According to the technique of operations review approach, one category of fault of an organization's management is A. Inherited psychological disorders. B. Fault of person. C. Failure to take responsibility.

D. Unsafe act. - CORRECT ANSWER=> C"

"Alice is an assembly-line worker in an auto parts manufacturing plant. One day she notices some irregularities in the operation of the punch press. Concerned about meeting production goals, she continues to operate the punch press without reporting the malfunction. Later that day, the punch press shatters, injuring Alice and several of her co-workers. This example best illustrates the accident causation theory of the A. Technique of operations review approach. B. Change analysis. C. Energy transfer theory.

D. Domino theory. - CORRECT ANSWER=> D"

"Which one of the following types of risk analysis uses historical data to assign specific values to consequences and their probabilities to reach a numeric indication of the level of risk? A. Predictive analysis B. Qualitative analysis C. Expert analysis

D. Quantitative analysis - CORRECT ANSWER=> D"

"Risk manager Christine is analyzing the risks faced by her company, Clear Sky Technology. She assigns a rating based on the significance of the consequences of the various risks. Her four ratings are: Low, Medium-Low, Medium-High, and High. The ratings that Christine assigns are a A. Quantitative assessment. B. Sensitivity analysis. C. Scenario analysis.

D. Qualitative assessment. - CORRECT ANSWER=> D"

"Vicki has been hired to investigate industrial accidents for a biotech company that produces a number of drugs. In most cases, she will be asked to look at a particular system failure and trace the events leading to the failure backwards. Which system safety analysis technique would be most appropriate for this application? A. Failure mode and effects analysis

"Which one of the following statements about root cause analysis (RCA) is true? A. Root cause analysis is aimed at reducing the harmful effects of a loss once the loss has occurred. B. A root cause must produce effective recommendations for prevention of future accidents. C. The first step in root cause analysis is analyzing causal factors.

D. Weather conditions and earthquakes can be considered root causes for some losses. - CORRECT

ANSWER=> B"

"A systematic procedure that uses the results of other analysis techniques to identify the predominant determinants of an accident is called A. Fault tree analysis. B. Root cause analysis. C. "5 Whys" analysis.

D. Failure mode and effects analysis. - CORRECT ANSWER=> B"

"New Houma Mortgage Company leases a fleet of automobiles for its real estate appraisers. During her review of recent vehicular accidents, their risk manager is trying to identify failures, human and/or mechanical, in order to target corrective actions and prevent future losses by looking at ways in which these accidents occurred and ways in which the frequency or severity can be reduced. This is an example of the A. Future states analysis. B. Technique of operations review approach. C. System safety technique.

D. Sequence of events analysis. - CORRECT ANSWER=> C"

"An organization may use several forms of analysis to prioritize risks and maximize risk control resources. Under one type of analysis, the direction of reasoning in fault tree analysis is reversed by starting with causes and branching out to consequences. This type of analysis is called A. "5 Whys" analysis. B. Root cause analysis. C. Failure mode and effects analysis.

D. Sensitivity analysis. - CORRECT ANSWER=> C"

"Tom works as a safety engineer at Cold Rolled Steep Corporation. During a system safety analysis, he identified the important components of the production process and has ranked the severity of losing each component into four failure categories. This is an attempt to establish priorities of the hazards and controls. Which one of the following analyses is Tom using? A. Criticality analysis B. Casual factor analysis C. Failure mode and effects analysis

D. Job safety analysis - CORRECT ANSWER=> A"

"One form of root cause analysis utilizes a fishbone diagram. Under this technique, a team of investigators brainstorms the causes of a risk event, sorts them into categories, and traces them to their origin. This type of analysis relies heavily on a A. Failure mode and effects analysis (FMEA). B. Sensitivity analysis. C. Scenario analysis.

D. "5 Whys" analysis. - CORRECT ANSWER=> D"

"Which one of the following is the initiating event in an event tree analysis? A. Automatic sprinkler system is not activated B. Lightning strikes a warehouse building while it is closed for the weekend C. Warehouse building catches fire due to lightning

D. Detection system notifies the fire department - CORRECT ANSWER=> B"

"The outcomes in a continuous probability distribution are called probability A. Data points. B. Severity distributions. C. Distribution values.

D. Density functions. - CORRECT ANSWER=> D"

"In a normal distribution, fewer than 5% of outcomes are A. Between one and two standard deviations above or below the mean. B. Outside two standard deviations above or below the mean. C. Within one standard deviation above or below the mean.

D. Between the mean and two standard deviations above or below the mean. - CORRECT ANSWER=>

B"

"Which one of the following statements about event tree analysis is true? A. Event trees analyze the consequences of accidental events. B. Event trees show the results of a progression of decisions. C. Event trees assume no risk control measures have been deployed.

D. Event trees can be used for qualitative analysis, but not for quantitative analysis. - CORRECT

ANSWER=> A"

"A main difference between decision trees and event trees is A. That decision trees have one possible outcome; event trees have several possible outcomes. B. The portrayal and analysis of various pathways. C. The process that is used to prepare the diagrams.

D. That event trees analyze the consequences of accidental events rather than decisions. - CORRECT

ANSWER=> D"

"Assuming a normal distribution, 34.13% of all outcomes are within one standard deviation above the mean. If the portion of the distribution between one and two standard deviations above the mean

scale project, Build Rite's controller used computer simulation to analyze the time necessary for completion of each phase. The best case, most likely, and worst case results, respectively, are summarized below. Based on the simulation results, which one of the following statements is true? Phase 1: 15 months, 16 months, 18 months Phase 2: 10 months, 12 months, 24 months Phase 3: 17 months, 20 months, 36 months A. Under the best case scenario, construction of all three phases will be completed in three or few years. B. Construction will be completed in exactly four years.

C. Under the worst case scenario, construc - CORRECT ANSWER=> D"

"Which one of the following is a benefit of the conditional value at risk (CVaR) method? A. It allows for changes in the portfolio. B. It takes into account the extremely large losses that may occur. C. It evaluates different market conditions.

D. It is designed for nonfinancial organizations. - CORRECT ANSWER=> B"

"Widget Manufacturing Company has noticed that its loss frequency and severity has increased in the past two years as its production has increased. In order to better forecast loss frequency and severity, Widget Manufacturing Company should consider using A. Trend analysis. B. Empirical probability analysis. C. Distribution analysis.

D. Theoretical probability analysis. - CORRECT ANSWER=> A"

"A financial analyst wants to evaluate the effect that a predicted increase in the cost of steel will have on the net income of East Side Manufacturing. Which one of the following measurement techniques should the analyst use? A. Cost at risk B. Earnings at risk C. Conditional value at risk

D. Value at risk - CORRECT ANSWER=> B"

"Assume that the expected safe life of a heating element for a particular type of furnace is 4,000 hours with a standard deviation of 200 hours, and that the expected safe life conforms to a normal distribution. If the maintenance schedule requires that the element be replaced after 4,000 hours, which one of the following represents the chance that the heating element will become unsafe before being replaced? A. 30% because of the effect of the standard deviation applied to the 4,000 hour mean B. 40% because there is a 10% tolerance allowance C. 50% because 50% of the normal distribution is below the 4,000 hour mean

D. 60% because there is a 10% tolerance allowance - CORRECT ANSWER=> C"

"A chart showing the probability of obtaining the numbers one through six on one roll of one die represents a A. Trend analysis distribution.

B. Empirical probability distribution. C. Theoretical probability distribution.

D. Continuous probability distribution. - CORRECT ANSWER=> C"

"Magruder Company would like to estimate the number of workers compensation claims to expect next year. Magruder's risk manager ran a regression analysis in which the number of workers compensation claims was the dependent variable and the number of payroll hours worked (in thousands) was the independent variable. The y-intercept from the regression was 3.8. The slope coefficient was 1.4. The risk manager believes that next year Magruder workers will work 80,000 payroll hours. Based on this information, approximately how many workers compensation claims should the risk manager expect next year? A. 15 B. 116 C. 305

D. 1,124 - CORRECT ANSWER=> B"

"An insurer is beginning to write business in a new state. The claim manager, Carla, wants to know how many new claim representatives to hire to accommodate the additional volume of claims. Based on the marketing department's estimate and industry data, Carla has determined the mean number of new claims to be 2,000, with a standard deviation of 1,000 in a normal distribution. If a claim representative can typically adjust 600 claims per year, and Carla wants at least 66% certainty that she has enough representatives, which one of the following represents how many representatives she will need to hire? A. 2 B. 3 C. 5

D. 6 - CORRECT ANSWER=> C"

"Probability analysis is particularly effective for projecting losses in organizations that have A. A substantial volume of data on past losses and fairly stable operations. B. Identified a relatively limited number of potential loss exposures. C. A limited amount of historical loss data from which to project changes in loss costs.

D. Elected to estimate probabilities based on external data rather than their own. - CORRECT

ANSWER=> A"

"Probability analysis would be most reliable for projecting losses in an organization A. Planning to restructure its operations. B. That has recently expanded its operations. C. With a substantial volume of data on past losses.

D. With a low number of historical losses. - CORRECT ANSWER=> C"

"The important first step in a decision-making model is to A. Assign a data scientist. B. Define the problem. C. Purchase the technology.

D. Their professional experience. - CORRECT ANSWER=> D"

"If an insurer wants to determine the numerical value for a known target variable, it is most likely to use A. Association rule learning. B. Regression. C. A classification tree.

D. Cluster analysis. - CORRECT ANSWER=> B"

"Which one of the following is the first step in the text mining process? A. Retrieve and prepare text with preprocessing techniques B. Create structured data from unstructured data (words) C. Create a model using data mining techniques

D. Evaluate the model - CORRECT ANSWER=> A"

"Which one of the following measures only the positive results of a model? A. Precision B. Accuracy C. F-score

D. Recall - CORRECT ANSWER=> A"

"Which one of the following is an example of exploratory data analysis? A. Correlation matrix B. Clustering C. Association rule learning

D. Classification trees - CORRECT ANSWER=> A"

"Data analytics is especially useful for A. Structured data. B. Unstructured data. C. Internal data.

D. Databases. - CORRECT ANSWER=> B"

"Which one of the following is a data analysis technique that operates in a way similar to the human brain? A. Social network analysis B. Regression C. Neural networks

D. Clustering - CORRECT ANSWER=> C"

"In the context of a predictive model, a true positive results when the model A. Incorrectly predicts a positive. B. Incorrectly predicts a negative. C. Correctly predicts a negative.

D. Correctly predicts a positive. - CORRECT ANSWER=> D"

"Which one of the following best describes the purpose of applying a predictive model to holdout data during the training process? A. Applying a predictive model to the holdout data helps ensure that the model is not overfitted to the training data. B. Applying a predictive model to the holdout data helps ensure that the model will not apply generalization, which is the ability of a model to apply itself to data outside the training data. C. Applying a predictive model to the holdout data helps ensure that the model will not become a confusion matrix. D. Applying a predictive model to the holdout data helps ensure that the model will be cross-validated. -

CORRECT ANSWER=> A"

"Tom, the regional manager at Westfork Mutual, has planned a community service day for all employees. He has asked his two assistant managers, Julian and Leah, to spread the word to other employees and encourage them to attend. Based on centrality measures of the company's email traffic, Tom is confident that Julian will spread the word to more employees more quickly through email than will Leah. Tom's confidence is based on Julian's high score in which one of the following centrality measures? A. Closeness B. Betweenness C. Association

D. Degree - CORRECT ANSWER=> A"

"The predictive approach to data-driven decision making would be most appropriate for which one of the following situations? A. A transportation company is looking for a way to optimize routes and improve fuel efficiency. B. A contractor is concerned about rising employee injuries at a jobsite. C. A restaurant is looking for a more reliable supplier of seafood. D. A marketing company is concerned about higher than average employee turnover at its Atlanta office.

  • CORRECT ANSWER=> A" "Which one of the following statements is most accurate? A. Most text is automatically meaningful to an algorithm. B. The text in organizational files, social media posts, news stories, consumer reviews, and so forth is not automatically meaningful to a machine or an algorithm. C. Text in organizational files, social media posts, news stories, consumer reviews, and so forth is an example of structured data.

D. Text mining is only effective for structured data. - CORRECT ANSWER=> B"

"The descriptive approach is applied A. When an insurer or risk manager is deciding what type of computer technology to purchase. B. When an insurer or risk manager has a specific problem. C. Repeatedly to provide information for data-driven decision making.

D. To process information received from the Internet of Things. - CORRECT ANSWER=> B"

A. Unaffected; only the individual productive potential is affected. B. Improved, since a new hire often brings new skills and knowledge. C. Unknown and not important to an organization's success.

D. Reduced due to a loss of that person's knowledge and future contributions. - CORRECT ANSWER=>

D"

"Which one of the following statements is true regarding sources of risk affecting property exposures? A. Deliberate acts of individuals or groups are generally considered natural risk sources. B. Physical risks to property can generally be broken into two categories: natural and mechanical. C. Risk control techniques can usually manage the likelihood and consequences of human risk sources to some extent. D. Risk management has little, if any, effect on controlling the consequences of events caused by natural

sources. - CORRECT ANSWER=> C"

"Which one of the following valuation standards is most appropriate for valuing products that are relatively indistinguishable from one another, such as agricultural products, oil, or precious metals? A. Functional replacement cost B. Market value C. Economic value

D. Book value - CORRECT ANSWER=> B"

"A specific observable action to discriminate against a person or class of persons is A. Overt impact. B. Disparate impact. C. Disparate treatment.

D. Overt discrimination. - CORRECT ANSWER=> D"

"The Life Safety Code requires that many buildings or structures should have A. A minimum of one means of egress. B. Doorways not leading to exits. C. Fire alarms.

D. Exits that rely on a single safeguard. - CORRECT ANSWER=> C"

"A female supervisor consistently reprimands male, but not female, employees for using the Internet for personal use. This is an example of A. Disparate impact. B. Overt discrimination. C. Disparate treatment.

D. Sexual harassment. - CORRECT ANSWER=> C"

"Traunton Manufacturing is considering a new manufacturing process that involves the use of a highly explosive chemical. After much analysis, Traunton abandons the idea in favor of a process that does not use the chemical. The risk control technique Traunton has chosen to address the human resource risk is A. Separation.

B. Loss reduction. C. Avoidance.

D. Loss prevention. - CORRECT ANSWER=> C"

"Some buildings have modest economic value but still have high replacement costs. One prime reason for this might be because of A. Condemnation proceedings. B. Construction styles that are simple and modest. C. Construction styles that are large or ornate.

D. Declining tax assessments on valued property. - CORRECT ANSWER=> C"

"Gwynn is the Personnel Director of a large company. She has received three employee complaints involving the same supervisor for using offensive sexual humor repeatedly. Gwynn is concerned about which one of the following types of claims? A. Poor work conditions B. Sexual harassment C. Wrongful discharge

D. Workplace violence - CORRECT ANSWER=> B"

"One of the characteristics of individuals and groups of individuals that affects susceptibility to injury or death caused by a building fire is A. Educational level. B. Occupation. C. Gender.

D. Age. - CORRECT ANSWER=> D"

"Jemma has two pairs of earrings she wants to ensure against theft. Jemma's earrings are categorized as A. Intangible property. B. Community property. C. Real property.

D. Personal property. - CORRECT ANSWER=> D"

"The risk control measures used to protect people and property from the adverse effects of hostile fires are collectively called A. Loss control. B. Fire safety. C. Life safety.

D. Loss prevention. - CORRECT ANSWER=> B"

"This earthquake-resistant construction relies on the resilience of steel or specially designed reinforced concrete to absorb energy, undergo considerable distortion, and return to its original shape. Which one of the following describes this type of design? A. Modified earthquake design B. Masonry design