Preview Questions Actuary | Role Specific Skill

Question 1: How is the Gini coefficient used in actuarial work?

Which action should you take?

Choose only one option

To determine the probability of an event occurring.

To predict the future returns of an investment portfolio.

To calculate the variance in mortality rates across different regions.

To measure the concentration of risk in an insurance portfolio.

Question 2: How does "Regulatory Compliance" influence pension plan pricing, particularly with respect to government-imposed minimum funding requirements and solvency standards?

Which action should you take?

Choose only one option

Regulatory compliance only affects life insurance companies, not pension plans

Regulatory compliance should be avoided as it limits pricing flexibility

Regulatory compliance is irrelevant as pension plans are unregulated

Regulatory compliance ensures that pension plans meet minimum funding and solvency requirements, influencing pricing assumptions and liability estimates

Question 3: Which statistical test is most appropriate for comparing the mean claim amounts between two different insurance groups?

Which action should you take?

Choose only one option

Mann-Whitney U Test

ANOVA

Independent T-Test

Chi-Square Test

Question 4: In a financial model for asset-liability management (ALM), what is the primary function of the yield curve?

Which action should you take?

Choose only one option

To predict future asset returns

To assess the sensitivity of liabilities to interest rate changes

To determine the optimal portfolio composition

To calculate the present value of liabilities

Question 5: What is the significance of "Capital Adequacy Ratios" (CAR) in banking risk management, and how do you ensure compliance with international regulatory standards like Basel III?

Which action should you take?

Choose only one option

CAR is determined solely by the bank's profits and has no impact on risk management

CAR is irrelevant in risk management as it does not account for systemic risk

CAR measures the financial strength of a bank and ensures it holds enough capital to absorb potential losses, and compliance is achieved by following regulatory frameworks like Basel III

CAR only applies to commercial banks and not investment banks or insurance companies

Question 6: What is the main objective of stress testing in the context of financial risk management?

Which action should you take?

Choose only one option

To calculate the expected return of investment portfolios

To determine the creditworthiness of borrowers

To estimate the average performance under normal conditions

To assess the impact of extreme but plausible adverse scenarios on financial positions