Question 1

Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

Accepted Answer

A)  Young people don't need health insurance because they are so healthy 
B)  You continue to be covered by your parents' insurance as long as you live at home, regardless of your age 
C)  You are covered by your parents' insurance until you marry, regardless of your age 
D)  If your parents become unemployed, your insurance coverage may stop, regardless of your age 
A)  Young people don't need health insurance because they are so healthy 
B)  You continue to be covered by your parents' insurance as long as you live at home, regardless of your age 
C)  You are covered by your parents' insurance until you marry, regardless of your age 
D)  If your parents become unemployed, your insurance coverage may stop, regardless of your age

Question 2

________ is a temporary restriction on program trading in a particular security or market, usually to reduce dramatic price movements.

Accepted Answer

A)  Super Dot 
B)  NYSE direct 
C)  Trading curb 
D)  Ticker tape 
A)  Super Dot 
B)  NYSE direct 
C)  Trading curb 
D)  Ticker tape

Question 3

Money market funds bond funds (also called "fixed income" funds), and stock funds (also called equity funds) are the categories of:

Accepted Answer

A)  Mutual funds 
B)  Professionally managed portfolio 
C)  Hedge funds 
D)  None of these 
A)  Mutual funds 
B)  Professionally managed portfolio 
C)  Hedge funds 
D)  None of these

Question 4

______________ is a health insurance plan that combines into a single policy the coverage for basic hospitalization, surgical, and physician expenses along with major medical protection.

Accepted Answer

A)  Major medical plan 
B)  Covered medical services 
C)  Comprehensive major medical insurance 
D)  None of these 
A)  Major medical plan 
B)  Covered medical services 
C)  Comprehensive major medical insurance 
D)  None of these

Question 5

Collection float is the __________.

Accepted Answer

A)  Total time between the mailing of the check by the customer and the availability of cash to the receiving firm 
B)  Time consumed in clearing the check through the banking system 
C)  Time the check is in the mail 
D)  Time during which the check received by the firm remains uncollected 
A)  Total time between the mailing of the check by the customer and the availability of cash to the receiving firm 
B)  Time consumed in clearing the check through the banking system 
C)  Time the check is in the mail 
D)  Time during which the check received by the firm remains uncollected

Question 6

What is inferred in case the share price is moving above the simple moving average line?

Accepted Answer

A)  Share is inferior 
B)  Price is increasing 
C)  Market is positive 
D)  Company is good 
A)  Share is inferior 
B)  Price is increasing 
C)  Market is positive 
D)  Company is good

Question 7

Which of the following compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset?

Accepted Answer

A)  Moving average convergence/Divergence 
B)  Relative strength index 
C)  On balance volume 
D)  Bollinger bands 
A)  Moving average convergence/Divergence 
B)  Relative strength index 
C)  On balance volume 
D)  Bollinger bands

Question 8

____________ is provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles.

Accepted Answer

A)  Enterprise evidence 
B)  Property evidence 
C)  Audit evidence 
D)  Regulatory evidence 
A)  Enterprise evidence 
B)  Property evidence 
C)  Audit evidence 
D)  Regulatory evidence

Question 9

Which of the following index is also known as value weighting?

Accepted Answer

A)  Price weighting 
B)  Equal weighting 
C)  Base weighting 
D)  Capitalization weighting 
A)  Price weighting 
B)  Equal weighting 
C)  Base weighting 
D)  Capitalization weighting

Question 10

Which of the following promotes education and ethical behavior among those involved in investment business?

Accepted Answer

A)  Securities investor protection corporation 
B)  Licensed international financial analyst 
C)  Chartered financial analyst institute 
D)  Securities and exchange commission 
A)  Securities investor protection corporation 
B)  Licensed international financial analyst 
C)  Chartered financial analyst institute 
D)  Securities and exchange commission

Question 11

_____ do not change the collective wealth of shareholders.

Accepted Answer

A)  Stock splits 
B)  Bonus shares 
C)  Right shares 
D)  All of the following 
A)  Stock splits 
B)  Bonus shares 
C)  Right shares 
D)  All of the following

Question 12

Capital appreciation is an appropriate objective when the investors want the portfolio to grow in real terms over time to meet some future need. Under this strategy, growth mainly occurs through capital gains. This is an

Accepted Answer

A)  Possessive strategy 
B)  Risk averse strategy 
C)  Aggressive strategy 
D)  Risk acceptance strategy 
A)  Possessive strategy 
B)  Risk averse strategy 
C)  Aggressive strategy 
D)  Risk acceptance strategy

Question 13

Which of the following lines depict the tradeoff between risk and expected return for individual securities?

Accepted Answer

A)  Value Market Line 
B)  Capital Market Line 
C)  Security Market Line 
D)  Money Market Line 
A)  Value Market Line 
B)  Capital Market Line 
C)  Security Market Line 
D)  Money Market Line

Question 14

The sensitivity of coupon price to change in its yield:

Accepted Answer

A)  Is directly related to the bond's yield 
B)  Is inversely related to the bond's yield to maturity 
C)  Is greater for increases in yield to maturity than it is for decreases in yield to maturity 
D)  Is constant regardless of whether the yield to maturity increases or decreases 
A)  Is directly related to the bond's yield 
B)  Is inversely related to the bond's yield to maturity 
C)  Is greater for increases in yield to maturity than it is for decreases in yield to maturity 
D)  Is constant regardless of whether the yield to maturity increases or decreases

Question 15

Life insurance is intangible. You can't see, smell, touch or taste its benefits and those benefits mainly happen when someone is died. However, life insurance does have some important benefits that should not be ignored in the financial planning process. Which of the following is out of those benefits?

Accepted Answer

A)  Protection from debtors 
B)  Financial protection from dependents 
C)  Vehicle for savings 
D)  Interest benefit 
A)  Protection from debtors 
B)  Financial protection from dependents 
C)  Vehicle for savings 
D)  Interest benefit

Question 16

The amount of insurance coverage you receive depends on the type of homeowner's policy you buy. You can also obtain coverage if you're a renter or a condominium owner. The basic form(HO-1) covers perils like:

Accepted Answer

A)  Smoke and Hail 
B)  Theft vandalism 
C)  Civil commotion 
D)  All of the above 
A)  Smoke and Hail 
B)  Theft vandalism 
C)  Civil commotion 
D)  All of the above

Question 17

___________stipulate a relationship between expected return and risk.

Accepted Answer

A)  APT 
B)  CAPM 
C)  Both CAPM and APT 
D)  Neither CAPM nor APT 
A)  APT 
B)  CAPM 
C)  Both CAPM and APT 
D)  Neither CAPM nor APT

Question 18

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

Accepted Answer

A)  If his parents took out an additional mortgage on their house for the loan 
B)  If the loan was insured by the federal government 
C)  If he went to a state college rather than a private college 
D)  If his parents co-signed the loan 
A)  If his parents took out an additional mortgage on their house for the loan 
B)  If the loan was insured by the federal government 
C)  If he went to a state college rather than a private college 
D)  If his parents co-signed the loan

Question 19

Deposit float is the __________.

Accepted Answer

A)  Total time between the mailing of the check by the customer and the availability of cash to the receiving firm 
B)  Time consumed in clearing the check through the banking system 
C)  Time the check is in the mail 
D)  Time during which the check received by the firm remains uncollected 
A)  Total time between the mailing of the check by the customer and the availability of cash to the receiving firm 
B)  Time consumed in clearing the check through the banking system 
C)  Time the check is in the mail 
D)  Time during which the check received by the firm remains uncollected

Question 20

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

Accepted Answer

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

Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

________ is a temporary restriction on program trading in a particular security or market, usually to reduce dramatic price movements.

Money market funds bond funds (also called "fixed income" funds), and stock funds (also called equity funds) are the categories of:

______________ is a health insurance plan that combines into a single policy the coverage for basic hospitalization, surgical, and physician expenses along with major medical protection.

Collection float is the __________.

What is inferred in case the share price is moving above the simple moving average line?

Which of the following compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset?

____________ is provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles.

Which of the following index is also known as value weighting?

Which of the following promotes education and ethical behavior among those involved in investment business?

_____ do not change the collective wealth of shareholders.

Capital appreciation is an appropriate objective when the investors want the portfolio to grow in real terms over time to meet some future need. Under this strategy, growth mainly occurs through capital gains. This is an

Which of the following lines depict the tradeoff between risk and expected return for individual securities?

The sensitivity of coupon price to change in its yield:

The amount of insurance coverage you receive depends on the type of homeowner's policy you buy. You can also obtain coverage if you're a renter or a condominium owner. The basic form(HO-1) covers perils like:

___________stipulate a relationship between expected return and risk.

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

Deposit float is the __________.

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

Certified Regulatory Compliance Manager

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Exam 2: Certified Trust and Financial Advisor

Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

________ is a temporary restriction on program trading in a particular security or market, usually to reduce dramatic price movements.

Money market funds bond funds (also called "fixed income" funds), and stock funds (also called equity funds) are the categories of:

______________ is a health insurance plan that combines into a single policy the coverage for basic hospitalization, surgical, and physician expenses along with major medical protection.

Collection float is the __________.

What is inferred in case the share price is moving above the simple moving average line?

Which of the following compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset?

____________ is provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles.

Which of the following index is also known as value weighting?

Which of the following promotes education and ethical behavior among those involved in investment business?

_____ do not change the collective wealth of shareholders.

Capital appreciation is an appropriate objective when the investors want the portfolio to grow in real terms over time to meet some future need. Under this strategy, growth mainly occurs through capital gains. This is an

Which of the following lines depict the tradeoff between risk and expected return for individual securities?

The sensitivity of coupon price to change in its yield:

The amount of insurance coverage you receive depends on the type of homeowner's policy you buy. You can also obtain coverage if you're a renter or a condominium owner. The basic form(HO-1) covers perils like:

___________stipulate a relationship between expected return and risk.

Doug must borrow $12,000 to complete his college education. Which of the following would NOT be likely to reduce the finance charge rate?

Deposit float is the __________.

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

Certified Regulatory Compliance Manager

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