IIA IIA CFSA
Q: 1
The management of index funds is _________ than the management of non-index funds, because an
index fund manager only needs to track a relatively fixed index of securities.
Options
Q: 2
When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear
(disregarding the impact of dividends). If share are purchased at $50 and the price appreciated to
$75, we have ________ on a mark-to-mark basis.
Options
Q: 3
Continuous auditing is a method used to automatically perform control and risk assessment more
frequently. Technology is the key to enable such an approach. Continuous auditing changes the audit
paradigm from periodic reviews of a sample to ongoing audit testing of ______ percent of
transactions.
Options
Q: 4
This agreement occurs when a security is sold with an agreement to buy it back. The repurchase date
is usually very short term, often one day. Dealers sell a portion of their securities to entities with cash
reserves and agree to buy them back for the principal plus interest. What is this?
Options
Q: 5
To server as family and/or financial planning tool
To provide for retirement To obtain favorable tax treatment
These are the primary reasons
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Q: 6
The most common index funds tries to tracks the S&P 500 by purchasing all 500 stocks using the
same percentage as the index. Other indices that mutual funds try to copy include all of the following
EXCEPT:
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Q: 7
An entity that purchases and sells securities on its own behalf is acting as:
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Q: 8
“These are usually secured by mortgages, deeds of trust, land contracts, or other types of real
estate liens. Interest rates for residential mortgages loans may be fixed or variable. Repayments of
principal may be set up for full amortization, negative amortization, or partial amortization with a
balloon payment at a specified rate.” What are these?
Options
Q: 9
Homeowner policies combine property and casualty coverage into the same policy (known as multi-
line policies). Homeowner policies provide four types of property coverage. All of the following are
out of those EXCEPT:
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Q: 10
It is a characteristic of insurance policy according to which the insured decides whether or not to pay
the premium to be covered by the policy. If the insured pays the premium, the insurance coma pay is
obliged to make payments as stated in the policy. What is it?
Options
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