Question 1

Which of the following bonds give the issuer the right to repay the debt prior to maturity?

Accepted Answer

A)  Municipal bonds 
B)  Callable bonds 
C)  Convertible bonds 
D)  Zero coupon bonds 
A)  Municipal bonds 
B)  Callable bonds 
C)  Convertible bonds 
D)  Zero coupon bonds

Question 2

Which of the following is the right to sell?

Accepted Answer

A)  System option 
B)  Strategic option 
C)  Call option 
D)  Put option 
A)  System option 
B)  Strategic option 
C)  Call option 
D)  Put option

Question 3

It is a term life policy written for a given number of years with coverage remaining unchanged throughout the effective period. What is it?

Accepted Answer

A)  Straight term policy 
B)  Term life insurance 
C)  Decreasing term policy 
D)  Renewability 
A)  Straight term policy 
B)  Term life insurance 
C)  Decreasing term policy 
D)  Renewability

Question 4

Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity.

Accepted Answer

A) True 
 B)False

Question 5

An entity that purchases and sells securities on its own behalf is acting as:

Accepted Answer

A)  A broker 
B)  A dealer 
C)  An agent 
D)  A principal 
A)  A broker 
B)  A dealer 
C)  An agent 
D)  A principal

Question 6

Which of the following charts give the economic information on weekly or yearly basis?

Accepted Answer

A)  Line charts 
B)  Bar charts 
C)  Pie charts 
D)  Symbol charts 
A)  Line charts 
B)  Bar charts 
C)  Pie charts 
D)  Symbol charts

Question 7

A form of EMH which states that security prices fully reflect all publicly available information is known as:

Accepted Answer

A)  Strong form 
B)  Week form 
C)  Semi strong form 
D)  None of these 
A)  Strong form 
B)  Week form 
C)  Semi strong form 
D)  None of these

Question 8

Which of the following is the theories searching the patterns in randomness?

Accepted Answer

A)  Elliott wave theory 
B)  Chaos theory 
C)  Portfolio theory 
D)  Valuation theory 
A)  Elliott wave theory 
B)  Chaos theory 
C)  Portfolio theory 
D)  Valuation theory

Question 9

Which of the following captures cash flows during the evaluation period?

Accepted Answer

A)  Actual diminishing returns 
B)  Dollar-weighted returns 
C)  Time-weighted returns 
D)  Opportunity cost returns 
A)  Actual diminishing returns 
B)  Dollar-weighted returns 
C)  Time-weighted returns 
D)  Opportunity cost returns

Question 10

Which of the following marketable securities is issued by the U.S. federal government?

Accepted Answer

A)  Commercial papers 
B)  Negotiable certificates of deposit 
C)  Repurchase agreement 
D)  T-bills 
A)  Commercial papers 
B)  Negotiable certificates of deposit 
C)  Repurchase agreement 
D)  T-bills

Question 11

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

Accepted Answer

A)  Pursuant to SEC exemptive orders 
B)  Shares issued by ETFs Traded on a secondary market 
C)  Are lonely redeem able in very large blocks (Blocks of 50,000 shares for example) 
D)  All of these 
A)  Pursuant to SEC exemptive orders 
B)  Shares issued by ETFs Traded on a secondary market 
C)  Are lonely redeem able in very large blocks (Blocks of 50,000 shares for example) 
D)  All of these

Question 12

Which of the following function removes the fear of buying and selling at ripe of price?

Accepted Answer

A)  Fair pricing function 
B)  Economic function 
C)  Exchange function 
D)  Continuous pricing function 
A)  Fair pricing function 
B)  Economic function 
C)  Exchange function 
D)  Continuous pricing function

Question 13

Co-insurance is:

Accepted Answer

A)  A provision in property insurance 
B)  A provision in actual cash value 
C)  A provision in liability insurance 
D)  A provision in health insurance 
A)  A provision in property insurance 
B)  A provision in actual cash value 
C)  A provision in liability insurance 
D)  A provision in health insurance

Question 14

Short-term portfolios are:

Accepted Answer

A)  Portfolios consisting of liabilities with maturities of one year to meet dollar needs. 
B)  Portfolios consisting of combined revenues of less than one year to meet liquidity needs. 
C)  Portfolios consisting of assets with maturities of less than one year to meet liquidity needs. 
D)  Portfolios consisting of expenses with maturities of less than or equal to one year to meet dollar needs. 
A)  Portfolios consisting of liabilities with maturities of one year to meet dollar needs. 
B)  Portfolios consisting of combined revenues of less than one year to meet liquidity needs. 
C)  Portfolios consisting of assets with maturities of less than one year to meet liquidity needs. 
D)  Portfolios consisting of expenses with maturities of less than or equal to one year to meet dollar needs.

Question 15

A document made available to prospective security buyers that describes the firm and a new security issue. ___________ are responsible for ensuring that all the information in the prospectus accurately represents the facts.

Accepted Answer

A)  Federal agencies 
B)  Private parties 
C)  Local governments 
D)  State government 
A)  Federal agencies 
B)  Private parties 
C)  Local governments 
D)  State government

Question 16

Bonds and preferred stocks do not ensure:

Accepted Answer

A)  Fixed income 
B)  Security 
C)  Ownership 
D)  None of the above 
A)  Fixed income 
B)  Security 
C)  Ownership 
D)  None of the above

Question 17

SAP stresses measurement of emerging earnings of a business from period to period while GAAP stresses measurement of the ability to pay claims in the future.

Accepted Answer

A) True 
 B)False

Question 18

The trend lines can have the following trends, EXCEPT:

Accepted Answer

A)  Upward trend 
B)  Downward trend 
C)  Trend range 
D)  Round phase 
A)  Upward trend 
B)  Downward trend 
C)  Trend range 
D)  Round phase

Question 19

One fund may invest on mostly established "blue chip" (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential for growth. These are the examples of:

Accepted Answer

A)  Mutual funds 
B)  Index funds 
C)  Stock funds 
D)  Bond funds 
A)  Mutual funds 
B)  Index funds 
C)  Stock funds 
D)  Bond funds

Question 20

All of the following are examples of financial assets EXCEPT.

Accepted Answer

A)  Stocks 
B)  Transport vehicles 
C)  Bonds 
D)  Bank deposits 
A)  Stocks 
B)  Transport vehicles 
C)  Bonds 
D)  Bank deposits

Which of the following bonds give the issuer the right to repay the debt prior to maturity?

Which of the following is the right to sell?

It is a term life policy written for a given number of years with coverage remaining unchanged throughout the effective period. What is it?

Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity.

An entity that purchases and sells securities on its own behalf is acting as:

Which of the following charts give the economic information on weekly or yearly basis?

A form of EMH which states that security prices fully reflect all publicly available information is known as:

Which of the following is the theories searching the patterns in randomness?

Which of the following captures cash flows during the evaluation period?

Which of the following marketable securities is issued by the U.S. federal government?

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

Which of the following function removes the fear of buying and selling at ripe of price?

Co-insurance is:

Short-term portfolios are:

A document made available to prospective security buyers that describes the firm and a new security issue. ___________ are responsible for ensuring that all the information in the prospectus accurately represents the facts.

Bonds and preferred stocks do not ensure:

SAP stresses measurement of emerging earnings of a business from period to period while GAAP stresses measurement of the ability to pay claims in the future.

The trend lines can have the following trends, EXCEPT:

One fund may invest on mostly established "blue chip" (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential for growth. These are the examples of:

All of the following are examples of financial assets EXCEPT.

Certified Regulatory Compliance Manager

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Exam 2: Certified Trust and Financial Advisor

Which of the following bonds give the issuer the right to repay the debt prior to maturity?

Which of the following is the right to sell?

It is a term life policy written for a given number of years with coverage remaining unchanged throughout the effective period. What is it?

Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity.

An entity that purchases and sells securities on its own behalf is acting as:

Which of the following charts give the economic information on weekly or yearly basis?

A form of EMH which states that security prices fully reflect all publicly available information is known as:

Which of the following is the theories searching the patterns in randomness?

Which of the following captures cash flows during the evaluation period?

Which of the following marketable securities is issued by the U.S. federal government?

There are some investment companies, known as exchange-traded funds or ETFS, which are legally classified as open-end companies or UITs. EFTs differ from traditional open-end companies and UITs because:

Which of the following function removes the fear of buying and selling at ripe of price?

Co-insurance is:

Short-term portfolios are:

A document made available to prospective security buyers that describes the firm and a new security issue. ___________ are responsible for ensuring that all the information in the prospectus accurately represents the facts.

Bonds and preferred stocks do not ensure:

SAP stresses measurement of emerging earnings of a business from period to period while GAAP stresses measurement of the ability to pay claims in the future.

The trend lines can have the following trends, EXCEPT:

One fund may invest on mostly established "blue chip" (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential for growth. These are the examples of:

All of the following are examples of financial assets EXCEPT.

Certified Regulatory Compliance Manager

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