People often put money aside, sometimes for years, to save up enough to make just one major
expenditure. Here are some common ones. Which of the following is Not out of those expenditures.:
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Correct Answer:
B
Q: 2
The nature and extent of interest rate risk, credit risk, reinsurance risk and other significant risks
should be disclosed is required for:
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Correct Answer:
C
Q: 3
All of the following are the forms of risk, EXCEPT:
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Correct Answer:
C
Q: 4
The auditor should obtain a sufficient understanding by performing risk assessment procedures to:
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Correct Answer:
B
Q: 5
_____________ funds may specialize in a particular industry segment, such as technology or
consumer products stocks.
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Correct Answer:
B
Q: 6
Which of the following statements about the over-the-counter market is false?
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Correct Answer:
B
Q: 7
The practice of spreading money among different investments to reduce risk is known as _______.
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Correct Answer:
A
Q: 8
I- With reference to the granting of customer credit lines a thorough analysis of the customer’s
overall financial position is performed prior to trading authorization.
II-confirmations of each transaction are sent to customers indicating the quantity, delivery month
and the contract price to ensure the integrity of transactions.
III-Original margin deposits in cash or acceptable securities to guarantee performance of contracts
are determined in accordance These all are adequate procedures and controls associated with:
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Correct Answer:
A
Q: 9
If you commit $200 to an investment at the beginning of the year, what is your rate of return for the
period?
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Correct Answer:
A
Q: 10
When policy periods expire, the premiums written are earned and are recognized as __________.
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Correct Answer:
C
Q: 11
________ is a temporary restriction on program trading in a particular security or market, usually to
reduce dramatic price movements.
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Correct Answer:
C
Q: 12
On which of the following financial statements would you expect to find assets, liabilities, and
stockholders' equity?
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Correct Answer:
A
Q: 13
The objective/s of trust department’s administration of corporate trust accounts include: I. Policies and producers ensure compliance with governing instruments, applicable law and accepted fiduciary principles II. Deficiencies are identified and corrective action is promptly initiated III.There is sufficient management and staff expertise to administer these accounts IV.Effective policies , procedures and internal controls have been established V.The legitimate needs of security holders and other interested parties are met in a professional and timely manner
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Correct Answer:
D
Q: 14
A set of possible values that a random variable can assume and their associated probabilities of
occurrence are referred to as __________.
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Correct Answer:
A
Q: 15
Assume our typical 65-year-old investor likewise has adequate insurance coverage and a cash
reserve. Let’s also assume she is retiring this year. This individual will want less risk xposure than the
25-year-old investor, because her earning power from employment will soon be nding; she will not
be able to recover any investment losses by saving more out of her paycheck. Depending on her
income from social security and a pension plan, she may need some current income from her
retirement portfolio to meet living expenses. Given that she can be expected to live an average of
another 20 years, she will need protection against inflation. A risk-averse investor will choose:
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Correct Answer:
B
Q: 16
Some objectives of an audit related to mutual funds might include determining that:
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Correct Answer:
D
Q: 17
Which of the following bonds do not pay interest during the life of the bonds?
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Correct Answer:
D
Q: 18
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.
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Correct Answer:
A
Q: 19
Insurance agents act as contractors in groups who express one or more entity with express authority
to act for the entity in dealing with insured.
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Correct Answer:
B
Q: 20
Short-duration contracts provide insurance protection for fixed period and can cancel the contract at
the end of any contract period.
