I am as nervous as everyone else and feel like I could study for at least 6 more months and still not make scores in the 90s… Having said that, since this is graded on a curve the optimal test would be EXTREMELY tough. This is becuase this will seperate out those who at least studies for a few months v. those who didn’t do hardly anything (even if its only by a handful of questions). That would also make it easier to be in the upper half of the bell curve for those of us who studied our tails off!! Good luck to everybody!
I agree! I do want to see lots of tricks, questions based on the smallest material and just overall challenging questions. It’s all relative…and if we know the material, it shouldn’t affect our scores that much. Best of luck to everyone, see you on the flip side
It would be better to make it easy. You need a true way of separating out the top 40%. You’re doing a disservice by making the test where only 10% get it right and then rest of the 90% randomly guess and then 33% of them pass. Th 2011 am mock was stupid hard. you could get 90% of the components right and then get the answer wrong.
homie Wrote: ------------------------------------------------------- > It would be better to make it easy. You need a > true way of separating out the top 40%. You’re > doing a disservice by making the test where only > 10% get it right and then rest of the 90% randomly > guess and then 33% of them pass. > > Th 2011 am mock was stupid hard. you could get 90% > of the components right and then get the answer > wrong. + 1 … 2011 was stupid hard and i bet passing rate would be less than 35% if they had a high MPS.
any paper should always be fairly set… not too tough & not too simple … you want everyone who has prepared well for the exam to have a realistic chance of passing … meritocracy is always the right way and Im sure come Sunday (Im giving in the Eastern Hemisphere :)) it would be good for all of us … Good luck everybody 
Why do i have a feeling that im going to be the first one sitting for the exam? lol
If the test is EXTREMELY hard, chances are that all of us who studied for the last x amount of months will know just enough to do it out and pick one their trick answers, where some schmuck who doesn’t know anything has a 33% chance by just randomly guessing.
I completely agree with the 2011 am being stupid hard. I i got about 40% on it (dont remember exactly), which is just a tadhigher than one is supposed to get by randomly guessing. On the PM i got 75%. I belive I know this stuff, just not to the point where I have memorized it like I have a photographic memory. There should not be such a discrepancy, they just made it to hard, where knowledge is no longer being tested. Instead instant recall and blind regurgitation of materail was tested.
PC79, I understand your point but disagree. If they make test extremely hard that will cause too many Type I errors - too many qualified candidates will fail due to stress, tricks, least likely/most likely misreading etc. That will solve Type II errors problem though - it will be impossible for unprepared folks to guess their way to the finish line. The goal for good quality test is to balance these errors, not too easy not extremely hard. If you spent quality time with material and know the stuff you deserve the right to be fairly tested on exam day. BTW, taking into consideration recent history we should see something more reasonable on exam. Last year lowest passing rate in 6 years most likely is going up this year. I might be wrong in my predictions but let’s keep the positive thinking. Best of luck to everyone tomorrow!
This is what makes me mad. I know how to convert using the Current rate method and the Temporal method. I’m having trouble memorizing the table that shows exposure to X will cause a gain/loss when the LC is Appreciating/depreciating. Chances are on the exam they’re just going to show net monetary assets or something and the currency rates and ask if there is a gain or loss. Someone who just knows the table is getting it right and I’m probably getting it wrong even though I probably put in more work.
It’s not graded on that type of curve. Obviously they don’t release exactly how it’s done, but the best guess is they take the highest score and then a certain percentage below that. For example, if the highest score is a 96% and they decide to take everyone within 30%, it’s possible that you could get a 100% pass rate if everyone scored above 66%. In practice this would never happen, but the theory is they don’t have to fail a certain number of people. In other words, you don’t have to root for people to do worse than you. Bad karma people. GL
Fraser this is actually pretty logical. If you have a net asset exposure and the local currency appreciate than you have a gain. Lets say you own a factory in Brazil and the Real appreciates. You could sell the factory (you would get paid in Reals),but since the Real appreciated, you would have again, when you converted back to dollars for example.
Fraser, All Current - exposure is Net Assets (foreign currency depreciates you lose, if it appreciates you win) Temporal - exposure is usually Net Monetary Liability (usually Monetary Assets < Monetary Liability, watch for that on the exam since debt could be 0, and Cash+AR>AP i.g.). If foreign currency depreciates you win because your liability shrinks, and if appreciates you lose. Fraser Wrote: ------------------------------------------------------- > This is what makes me mad. I know how to convert > using the Current rate method and the Temporal > method. I’m having trouble memorizing the table > that shows exposure to X will cause a gain/loss > when the LC is Appreciating/depreciating. > > Chances are on the exam they’re just going to show > net monetary assets or something and the currency > rates and ask if there is a gain or loss. Someone > who just knows the table is getting it right and > I’m probably getting it wrong even though I > probably put in more work.
I want to get this whole process done as soon as possible…so I want as easy a test as possible please! As a repeater I’m done with the self-learning aspect in terms of this level at least. I just want to get on to level 3. There is a minimum passing score, whoever gets over that will pass, regardless of how difficult it is.
jpsi1 Wrote: ------------------------------------------------------- > Fraser, > All Current - exposure is Net Assets (foreign > currency depreciates you lose, if it appreciates > you win) > > Temporal - exposure is usually Net Monetary > Liability (usually Monetary Assets < Monetary > Liability, watch for that on the exam since debt > could be 0, and Cash+AR>AP i.g.). If foreign > currency depreciates you win because your > liability shrinks, and if appreciates you lose. > > Fraser Wrote: > -------------------------------------------------- > ----- > > This is what makes me mad. I know how to > convert > > using the Current rate method and the Temporal > > method. I’m having trouble memorizing the table > > that shows exposure to X will cause a gain/loss > > when the LC is Appreciating/depreciating. > > > > Chances are on the exam they’re just going to > show > > net monetary assets or something and the > currency > > rates and ask if there is a gain or loss. > Someone > > who just knows the table is getting it right > and > > I’m probably getting it wrong even though I > > probably put in more work. Are you sure? In my notes, I have temporal as net monetary asset as exposure.
I am sure. Net Monetary Asset and Net Monetary Liability are interchangeable. Negative Net Monetary Asset becomes Net Monetary Liability and the other way around. Your notes are correct as well. The key word for Temporal case is that USUALLY we have Net Asset Liability exposure (the example of exception to that in case of Net Monetary Asset exposure is given in my post).
When subsidiary have net monetary asset and currency appreciates, then the parent company gains and vv. When subsidiary have net monetary liability and currency of subsidiary is appreciating, then its a loss to parent in the income statement. Actually that’s the difference between net income (all current) and net income (temporal) If there’s a net monetary liability and the currency of subsidiary appreciates, then it means it costs the parent company more, thus it is a loss which decreases the net income of the parent company. I hope this helps.