schweser exam workshop questions book

Just curious to get other people’s thoughts on this workbook of questions. while some questions are nice, I find a lot of them to be utterly ridiculous nitpicking nonsense.


True or False: At any point in the life of a forward contract, the PV of the contract represents the current credit risk to the party with the positive market value.

Answer: False. It represents *potential* credit risk. Not *current* credit.

There are so many in here that are just gotcha-word-choice, rather than actual learning material.

bag schweser questions

another one:

True or False: Liquidity is a source of market risk and settlement risk is a souce of nonfinancial risk.

False: Liquidity is a source of financial risk, not market risk.

how ridiculous can you be? lol… transacting in any market place, liquidity is a risk, whether its buying/selling homes or shares of Intel. They need some editors over at Schweser to look at this stuff before they put it out.

I’ve seen the current vs future on prior am exams (maybe 2009?). That is not far out there.

What do you mean Pro ?

I agree with you that there is something make me confuse…However, it is what CFAI say also.

page 272 reading 34:

Financial risk include: market risk, credit risk and liquidity risk. Market risk is risk related to interest rates, exchange rates, stock price and commodities prices.

I think it is their definition that we have to follow…