Skip to content

FRM Part I · FRM Exam Part I · GARP Code of Conduct

Which of the following best describes the primary purpose of the GARP Code of Conduct?

The Code of Conduct exists to set ethical standards of professional behavior that GARP members, including FRM candidates and holders, must follow. It is not a regulatory capital rule, a modeling manual, or an exam syllabus document; its focus is integrity and professional responsibility.

  1. ATo set minimum capital requirements for financial institutions employing FRM holders
  2. BTo establish ethical standards of professional conduct that GARP members and FRM candidates and holders are expected to upholdCorrect
  3. CTo prescribe the quantitative models that risk managers must use when measuring market risk
  4. DTo define the examination syllabus and passing standards for the FRM program

Explanation

The Code sets out ethical principles and professional standards for GARP members, including FRM candidates and holders. It does not set capital rules, prescribe models, or define the exam syllabus, which are covered by regulators and GARP's Study Guide.

Did you get it right without looking?

One question tells you little. A timed set on GARP Code of Conduct shows your real accuracy, how long you take and where you lose marks.

Practise GARP Code of ConductFree diagnostic mock

More GARP Code of Conduct questions