Question 1

Which of the following hypothesis states that some stocks are priced more efficiently than others?

Accepted Answer

A)  Financial media hypothesis 
B)  Financial instability hypothesis 
C)  Semi-efficient market hypothesis 
D)  Adaptive markets hypothesis 
A)  Financial media hypothesis 
B)  Financial instability hypothesis 
C)  Semi-efficient market hypothesis 
D)  Adaptive markets hypothesis

Question 2

Which of the following was not suggested by John Maynard Keynes as a reason for holding cash?

Accepted Answer

A)  Speculative motive 
B)  Investment motive 
C)  Precautionary motive 
D)  Transaction motive 
A)  Speculative motive 
B)  Investment motive 
C)  Precautionary motive 
D)  Transaction motive

Question 3

It is a term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability

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

Which of the following is NOT the interrelated component of internal control?

Accepted Answer

A)  Control environment 
B)  Risk assessment 
C)  Control activities 
D)  Planning control 
A)  Control environment 
B)  Risk assessment 
C)  Control activities 
D)  Planning control

Question 5

An account that permits an investor to borrow part of the cost of investment firm a brokerage firm.

Accepted Answer

A)  Dealer account 
B)  Option account 
C)  Margin account 
D)  Cash account 
A)  Dealer account 
B)  Option account 
C)  Margin account 
D)  Cash account

Question 6

Major types of Real Estate Investment Trust (REITs) include all of the following EXCEPT:

Accepted Answer

A)  Equity REITs 
B)  Mortgages REITs 
C)  Hybrid REITs 
D)  None of these 
A)  Equity REITs 
B)  Mortgages REITs 
C)  Hybrid REITs 
D)  None of these

Question 7

Insurance coverage that protects real and personal property from catastrophic losses caused by a variety of perils, such as fire, theft, vandalism, and windstorm is referred as:

Accepted Answer

A)  Property insurance 
B)  Insurance premium 
C)  Liability insurance 
D)  Peril 
A)  Property insurance 
B)  Insurance premium 
C)  Liability insurance 
D)  Peril

Question 8

Which of the following is a characteristic of cyclical stock?

Accepted Answer

A)  Their value is tied with the overall state of economy. 
B)  They are low-priced, speculative and risky securities. 
C)  They have stable earnings and no extensive liabilities 
D)  None of the above 
A)  Their value is tied with the overall state of economy. 
B)  They are low-priced, speculative and risky securities. 
C)  They have stable earnings and no extensive liabilities 
D)  None of the above

Question 9

In which case resistance occurs?

Accepted Answer

A)  Inability to break below prior high 
B)  Inability to break below prior low 
C)  Inability to repair beyond prior low 
D)  None of these 
A)  Inability to break below prior high 
B)  Inability to break below prior low 
C)  Inability to repair beyond prior low 
D)  None of these

Question 10

The arrangements by which pools manage separate accounts for each pool member from which the losses of that member are paid is called:

Accepted Answer

A)  employee pools 
B)  claim-serving pools 
C)  singular entity pools 
D)  None of the above 
A)  employee pools 
B)  claim-serving pools 
C)  singular entity pools 
D)  None of the above

Question 11

Which of the following shows relationship between market yield and time to maturity?

Accepted Answer

A)  Smart curves 
B)  Bezier curves 
C)  Yield curves 
D)  Filling curves 
A)  Smart curves 
B)  Bezier curves 
C)  Yield curves 
D)  Filling curves

Question 12

A company that might not have historical perspective in background but it will find a place in the future depending on the product or industry is a ___________.

Accepted Answer

A)  Value company 
B)  Large cap company 
C)  Small cap company 
D)  Growth company 
A)  Value company 
B)  Large cap company 
C)  Small cap company 
D)  Growth company

Question 13

Negligence is:

Accepted Answer

A)  Failing to act in a reasonable manner 
B)  Failing to take necessary steps to protect others from harm 
C)  Causing a loss 
D)  Losing the judgment 
A)  Failing to act in a reasonable manner 
B)  Failing to take necessary steps to protect others from harm 
C)  Causing a loss 
D)  Losing the judgment

Question 14

An investment is the current commitment of dollars for a period of time in order to derive future payments that will compensate the investor for:

Accepted Answer

A)  The time the funds are committed 
B)  The expected rate of inflation during this time period 
C)  The uncertainty of future payments 
D)  All of these 
A)  The time the funds are committed 
B)  The expected rate of inflation during this time period 
C)  The uncertainty of future payments 
D)  All of these

Question 15

Tax Act states that:

Accepted Answer

A)  A life insurer is subject to an investment income tax of 15 percent on its 'net Canadian life investment income 
B)  A life insurer is subject to an investment income tax of 25 percent on its 'net Canadian life investment income 
C)  A life insurer is subject to an investment income tax of 35 percent on its 'net Canadian life investment income 
D)  A life insurer is subject to an investment income tax of 45 percent on its 'net Canadian life investment income 
A)  A life insurer is subject to an investment income tax of 15 percent on its 'net Canadian life investment income 
B)  A life insurer is subject to an investment income tax of 25 percent on its 'net Canadian life investment income 
C)  A life insurer is subject to an investment income tax of 35 percent on its 'net Canadian life investment income 
D)  A life insurer is subject to an investment income tax of 45 percent on its 'net Canadian life investment income

Question 16

Close-end funds:

Accepted Answer

A)  Are not redeemable 
B)  The investment portfolios generally are managed by separate entities 
C)  Are permitted to invest in a greater amount of "illiquid" securities than mutual funds. 
D)  All of these 
A)  Are not redeemable 
B)  The investment portfolios generally are managed by separate entities 
C)  Are permitted to invest in a greater amount of "illiquid" securities than mutual funds. 
D)  All of these

Question 17

Which of the following is a basket of stocks that tracks a particular sector, investment, style, geographical area or the market as a whole?

Accepted Answer

A)  Exchange traded fund 
B)  Open end fund 
C)  Closed end fund 
D)  Unit investment trust 
A)  Exchange traded fund 
B)  Open end fund 
C)  Closed end fund 
D)  Unit investment trust

Question 18

To server as family and/or financial planning tool To provide for retirement To obtain favorable tax treatment These are the primary reasons

Accepted Answer

A)  For establishing a trust 
B)  For naming an institution as trustee 
C)  of Safekeeping 
D)  of Custodial 
A)  For establishing a trust 
B)  For naming an institution as trustee 
C)  of Safekeeping 
D)  of Custodial

Question 19

Standard & Poor's Composite Index is composed of how many "large" firm stocks?

Accepted Answer

A)  250 
B)  500 
C)  750 
D)  1000 
A)  250 
B)  500 
C)  750 
D)  1000

Question 20

The marketable securities available for unassigned purposes at the current time is referred to as the __________ segment in the one's portfolio of short-term marketable securities.

Accepted Answer

A)  Ready cash 
B)  Controlled cash 
C)  Free cash 
D)  Cash and cash equivalent 
A)  Ready cash 
B)  Controlled cash 
C)  Free cash 
D)  Cash and cash equivalent

Which of the following hypothesis states that some stocks are priced more efficiently than others?

Which of the following was not suggested by John Maynard Keynes as a reason for holding cash?

It is a term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability

Which of the following is NOT the interrelated component of internal control?

An account that permits an investor to borrow part of the cost of investment firm a brokerage firm.

Major types of Real Estate Investment Trust (REITs) include all of the following EXCEPT:

Insurance coverage that protects real and personal property from catastrophic losses caused by a variety of perils, such as fire, theft, vandalism, and windstorm is referred as:

Which of the following is a characteristic of cyclical stock?

In which case resistance occurs?

The arrangements by which pools manage separate accounts for each pool member from which the losses of that member are paid is called:

Which of the following shows relationship between market yield and time to maturity?

A company that might not have historical perspective in background but it will find a place in the future depending on the product or industry is a ___________.

Negligence is:

An investment is the current commitment of dollars for a period of time in order to derive future payments that will compensate the investor for:

Tax Act states that:

Close-end funds:

Which of the following is a basket of stocks that tracks a particular sector, investment, style, geographical area or the market as a whole?

To server as family and/or financial planning tool To provide for retirement To obtain favorable tax treatment These are the primary reasons

Standard & Poor's Composite Index is composed of how many "large" firm stocks?

The marketable securities available for unassigned purposes at the current time is referred to as the __________ segment in the one's portfolio of short-term marketable securities.

Certified Regulatory Compliance Manager

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Exam 2: Certified Trust and Financial Advisor

Which of the following hypothesis states that some stocks are priced more efficiently than others?

Which of the following was not suggested by John Maynard Keynes as a reason for holding cash?

It is a term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability

Which of the following is NOT the interrelated component of internal control?

An account that permits an investor to borrow part of the cost of investment firm a brokerage firm.

Major types of Real Estate Investment Trust (REITs) include all of the following EXCEPT:

Insurance coverage that protects real and personal property from catastrophic losses caused by a variety of perils, such as fire, theft, vandalism, and windstorm is referred as:

Which of the following is a characteristic of cyclical stock?

In which case resistance occurs?

The arrangements by which pools manage separate accounts for each pool member from which the losses of that member are paid is called:

Which of the following shows relationship between market yield and time to maturity?

A company that might not have historical perspective in background but it will find a place in the future depending on the product or industry is a ___________.

Negligence is:

An investment is the current commitment of dollars for a period of time in order to derive future payments that will compensate the investor for:

Tax Act states that:

Close-end funds:

Which of the following is a basket of stocks that tracks a particular sector, investment, style, geographical area or the market as a whole?

To server as family and/or financial planning tool To provide for retirement To obtain favorable tax treatment These are the primary reasons

Standard & Poor's Composite Index is composed of how many "large" firm stocks?

The marketable securities available for unassigned purposes at the current time is referred to as the __________ segment in the one's portfolio of short-term marketable securities.

Certified Regulatory Compliance Manager

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