Question 1

The process of managing a portfolio never stops. Once the funds are initially invested according to the plan, the real work begins in:

Accepted Answer

A)  Evaluating the portfolio's performance 
B)  Updating the portfolio based on changes 
C)  Examining current and projected financial goals 
D)  A and B both 
A)  Evaluating the portfolio's performance 
B)  Updating the portfolio based on changes 
C)  Examining current and projected financial goals 
D)  A and B both

Question 2

Most of the major types of health plans are sufficient to meet the protection needs of most individuals and families. But, insurance companies offer other options that provide limited protection against certain types of perils. Which one of the following is the example of those limited types of protections?

Accepted Answer

A)  Accident protection 
B)  Home income policies 
C)  Comprehensive medical insurance 
D)  Both A and B 
A)  Accident protection 
B)  Home income policies 
C)  Comprehensive medical insurance 
D)  Both A and B

Question 3

In bottom-up approach of fundamental analysis, investors begin their analysis with:

Accepted Answer

A)  Industry 
B)  Economy 
C)  Market 
D)  Company 
A)  Industry 
B)  Economy 
C)  Market 
D)  Company

Question 4

The methods used for the premium rates establishment are:

Accepted Answer

A)  Manual, judgmental and premium rating 
B)  Commercial, judgmental and merit rating 
C)  Manual, experimental and merit rating 
D)  Manual, judgmental and merit rating 
A)  Manual, judgmental and premium rating 
B)  Commercial, judgmental and merit rating 
C)  Manual, experimental and merit rating 
D)  Manual, judgmental and merit rating

Question 5

Which of the following statement is not characteristic of a line chart?

Accepted Answer

A)  It is simplest and most familiar chart 
B)  It is efficient in showing more detail 
C)  It is an extension of a scatter graph 
D)  It is created by connecting a series of points 
A)  It is simplest and most familiar chart 
B)  It is efficient in showing more detail 
C)  It is an extension of a scatter graph 
D)  It is created by connecting a series of points

Question 6

Fidelity bonds cover employees against dishonest acts by employees.

Accepted Answer

A) True 
 B)False

Question 7

Standard and poor's 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:

Accepted Answer

A)  Equity indices 
B)  Stock exchange indices 
C)  OTC market indices 
D)  All of these 
A)  Equity indices 
B)  Stock exchange indices 
C)  OTC market indices 
D)  All of these

Question 8

Which of the following programs propagate the ethics?

Accepted Answer

A)  London Instruments Fiscal Attachment 
B)  Laurel Immigration Fairness Analysis 
C)  Low Income Financial Association 
D)  Licensed International Financial Analyst 
A)  London Instruments Fiscal Attachment 
B)  Laurel Immigration Fairness Analysis 
C)  Low Income Financial Association 
D)  Licensed International Financial Analyst

Question 9

If the Dow Johns industrial average stock splits 3 for 1 then what impact will this have on the index divisor?

Accepted Answer

A)  Index divisor will incline 
B)  Index divisor remains constant 
C)  Index divisor will decline 
D)  Index divisor multiply 
A)  Index divisor will incline 
B)  Index divisor remains constant 
C)  Index divisor will decline 
D)  Index divisor multiply

Question 10

Which of the following is formula of earning per share?

Accepted Answer

A)  EPS=IRR/ market value per share 
B)  EPS=ROE*Net asset value per share 
C)  EPS= NPV* Retained earning value per share 
D)  EPS=ROE* Book value per share 
A)  EPS=IRR/ market value per share 
B)  EPS=ROE*Net asset value per share 
C)  EPS= NPV* Retained earning value per share 
D)  EPS=ROE* Book value per share

Question 11

Which of the following measures the sensitivity of an asset's price to interest rate movements, expressed as a number of years?

Accepted Answer

A)  Duration 
B)  Yield to maturity 
C)  Convexity 
D)  Immunization 
A)  Duration 
B)  Yield to maturity 
C)  Convexity 
D)  Immunization

Question 12

What is applied to the sale of all or a block of an entity's insurance in force of another entity?

Accepted Answer

A)  Insurance impede 
B)  Portfolio Reinsurance 
C)  Poly-holder insurance 
D)  Syndicated insurance 
A)  Insurance impede 
B)  Portfolio Reinsurance 
C)  Poly-holder insurance 
D)  Syndicated insurance

Question 13

The benefits of tax deferral will out weigh the costs of a variable annuity only if the investor holds it as:

Accepted Answer

A)  Long-Term investment 
B)  Short-Term investment 
C)  Credit-Risk investment 
D)  Annuity investment 
A)  Long-Term investment 
B)  Short-Term investment 
C)  Credit-Risk investment 
D)  Annuity investment

Question 14

Technical Analysis method that tries to pinpoint when a security's shares are being accumulated (being bought) or are being sold is known as.

Accepted Answer

A)  Relative strength index 
B)  On Balance Volume 
C)  Moving average 
D)  None of the above 
A)  Relative strength index 
B)  On Balance Volume 
C)  Moving average 
D)  None of the above

Question 15

General Market indices in the commodities market with which many people would be familiar include:

Accepted Answer

A)  Goldman Sachs Commodities Index (GSCI) 
B)  Commodities Research board 
C)  Acme Tool & Die 
D)  Both A&B 
A)  Goldman Sachs Commodities Index (GSCI) 
B)  Commodities Research board 
C)  Acme Tool & Die 
D)  Both A&B

Question 16

The investor's objectives are his or her investment goals expressed in terms of both risk and returns. The relationship between risk and returns requires that goals not be expressed only interms of returns. Expressing goals only in terms of returns can lead to:

Accepted Answer

A)  Churning 
B)  Inappropriate investment practices by the portfolio manager 
C)  Hedging 
D)  Over the counter trading 
A)  Churning 
B)  Inappropriate investment practices by the portfolio manager 
C)  Hedging 
D)  Over the counter trading

Question 17

Eurodollars are best described as __________.

Accepted Answer

A)  The new currency of the European Union 
B)  A U.S. dollar-denominated deposit -- generally in a bank located outside the United States -- that is not subject to U.S. banking regulations 
C)  A currency deposited outside its country of origin 
D)  A foreign-denominated deposit subject to U.S. banking regulations 
A)  The new currency of the European Union 
B)  A U.S. dollar-denominated deposit -- generally in a bank located outside the United States -- that is not subject to U.S. banking regulations 
C)  A currency deposited outside its country of origin 
D)  A foreign-denominated deposit subject to U.S. banking regulations

Question 18

A person who buys and sells securities on behalf of clients and gives them investment advice and information is called:

Accepted Answer

A)  Stockholder 
B)  Account executive 
C)  Financial consultant 
D)  All are one and the same 
A)  Stockholder 
B)  Account executive 
C)  Financial consultant 
D)  All are one and the same

Question 19

An estimate due to time lags in the receipt of reports from cendants is called reinsurance.

Accepted Answer

A) True 
 B)False

Question 20

An attitude that includes a questioning mind and a critical assessment of audit evidence is called:

Accepted Answer

A)  Operational skepticism 
B)  Audit skepticism 
C)  Professional skepticism 
D)  None of the above 
A)  Operational skepticism 
B)  Audit skepticism 
C)  Professional skepticism 
D)  None of the above

The process of managing a portfolio never stops. Once the funds are initially invested according to the plan, the real work begins in:

In bottom-up approach of fundamental analysis, investors begin their analysis with:

The methods used for the premium rates establishment are:

Which of the following statement is not characteristic of a line chart?

Fidelity bonds cover employees against dishonest acts by employees.

Standard and poor's 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:

Which of the following programs propagate the ethics?

If the Dow Johns industrial average stock splits 3 for 1 then what impact will this have on the index divisor?

Which of the following is formula of earning per share?

Which of the following measures the sensitivity of an asset's price to interest rate movements, expressed as a number of years?

What is applied to the sale of all or a block of an entity's insurance in force of another entity?

The benefits of tax deferral will out weigh the costs of a variable annuity only if the investor holds it as:

Technical Analysis method that tries to pinpoint when a security's shares are being accumulated (being bought) or are being sold is known as.

General Market indices in the commodities market with which many people would be familiar include:

The investor's objectives are his or her investment goals expressed in terms of both risk and returns. The relationship between risk and returns requires that goals not be expressed only interms of returns. Expressing goals only in terms of returns can lead to:

Eurodollars are best described as __________.

A person who buys and sells securities on behalf of clients and gives them investment advice and information is called:

An estimate due to time lags in the receipt of reports from cendants is called reinsurance.

An attitude that includes a questioning mind and a critical assessment of audit evidence is called:

Certified Regulatory Compliance Manager

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Exam 2: Certified Trust and Financial Advisor

The process of managing a portfolio never stops. Once the funds are initially invested according to the plan, the real work begins in:

In bottom-up approach of fundamental analysis, investors begin their analysis with:

The methods used for the premium rates establishment are:

Which of the following statement is not characteristic of a line chart?

Fidelity bonds cover employees against dishonest acts by employees.

Standard and poor's 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is the examples of:

Which of the following programs propagate the ethics?

If the Dow Johns industrial average stock splits 3 for 1 then what impact will this have on the index divisor?

Which of the following is formula of earning per share?

Which of the following measures the sensitivity of an asset's price to interest rate movements, expressed as a number of years?

What is applied to the sale of all or a block of an entity's insurance in force of another entity?

The benefits of tax deferral will out weigh the costs of a variable annuity only if the investor holds it as:

Technical Analysis method that tries to pinpoint when a security's shares are being accumulated (being bought) or are being sold is known as.

General Market indices in the commodities market with which many people would be familiar include:

The investor's objectives are his or her investment goals expressed in terms of both risk and returns. The relationship between risk and returns requires that goals not be expressed only interms of returns. Expressing goals only in terms of returns can lead to:

Eurodollars are best described as __________.

A person who buys and sells securities on behalf of clients and gives them investment advice and information is called:

An estimate due to time lags in the receipt of reports from cendants is called reinsurance.

An attitude that includes a questioning mind and a critical assessment of audit evidence is called:

Certified Regulatory Compliance Manager

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