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
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Correct Answer:
A
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
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Correct Answer:
A
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
Discussion
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Correct Answer:
D
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
Discussion
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Correct Answer:
D
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
Options
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Correct Answer:
A
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:
Options
Discussion
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Correct Answer:
D
Q: 7
An entity that purchases and sells securities on its own behalf is acting as:
Options
Discussion
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Correct Answer:
B
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
Discussion
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Correct Answer:
B
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:
Options
Discussion
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Correct Answer:
D
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
Discussion
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Correct Answer:
A
Q: 11
Historical simulation and model based approach are the methods to calculate:
Options
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Correct Answer:
C
Q: 12
All the statements mentioned below are clear and compelling business benefits of a strategic
approach to enterprise-wide risk intelligence; EXCEPT:
Options
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Correct Answer:
D
Q: 13
An intelligent risks management platform approaches risk from the:
Options
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Correct Answer:
A
Q: 14
The objective/s of a trust department audit is/ are to:
Options
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Correct Answer:
D
Q: 15
A bank may serve as ___________ for a company’s employee benefit and retirement plans.
Options
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Correct Answer:
D
Q: 16
Derivates can be effective low cost tools for managing expose experience losses due to:
Options
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Correct Answer:
D
Q: 17
All of these are disadvantages of mutual funds EXCEPT:
Options
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Correct Answer:
B
Q: 18
General Market indices in the commodities market with which many people would be familiar
include:
Options
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Correct Answer:
D
Q: 19
Close-end funds:
Options
Discussion
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Correct Answer:
D
Q: 20
Nature of internal audit activities and quality criteria against which the performance of these
services can be evaluated is best portrayed by:
