Question 1

Which of the following is NOT an example of derivative security?

Accepted Answer

A)  Futures 
B)  Options 
C)  Swaps 
D)  Bonds 
A)  Futures 
B)  Options 
C)  Swaps 
D)  Bonds

Question 2

Which of the following in Not the flow of transaction through the claims cycle?

Accepted Answer

A)  Quick-tail lines claim acceptance 
B)  Insurance underwritten 
C)  Claim settlement 
D)  Loss reserve evaluation 
A)  Quick-tail lines claim acceptance 
B)  Insurance underwritten 
C)  Claim settlement 
D)  Loss reserve evaluation

Question 3

Which of the following is not a standard method of transferring funds when using concentration banking?

Accepted Answer

A)  Depository transfer check 
B)  Automated clearinghouse electronic transfer 
C)  Wire transfer 
D)  Payable through draft (PT
D)  
A)  Depository transfer check 
B)  Automated clearinghouse electronic transfer 
C)  Wire transfer 
D)  Payable through draft (PT
D)

Question 4

Which of the following statements hold TRUE for ask price?

Accepted Answer

A)  It is the price at which a broker is willing to sell a certain security 
B)  It is the price at which a broker is willing to buy a certain security 
C)  It is the quoted price in an order to buy shares of a company 
D)  It is the rate at which a dealer will buy the base currency 
A)  It is the price at which a broker is willing to sell a certain security 
B)  It is the price at which a broker is willing to buy a certain security 
C)  It is the quoted price in an order to buy shares of a company 
D)  It is the rate at which a dealer will buy the base currency

Question 5

__________ is a statement, preferably written, that specifies how investment capital will be invested to achieve a specific goal.

Accepted Answer

A)  Investment Line 
B)  Investment plan 
C)  Investment direction 
D)  Investment goal 
A)  Investment Line 
B)  Investment plan 
C)  Investment direction 
D)  Investment goal

Question 6

What does the abbreviation RSI stands for?

Accepted Answer

A)  Repetitive String Instruments 
B)  Relative strength index 
C)  Rapid Succession Intrigues 
D)  Review of Symbolic Inquests 
A)  Repetitive String Instruments 
B)  Relative strength index 
C)  Rapid Succession Intrigues 
D)  Review of Symbolic Inquests

Question 7

All of the following are characteristics of stop orders EXCEPT:

Accepted Answer

A)  Protecting profits 
B)  Minimizing losses 
C)  Rapid execution 
D)  It is seldom used by investors 
A)  Protecting profits 
B)  Minimizing losses 
C)  Rapid execution 
D)  It is seldom used by investors

Question 8

Which of the following is the ratio of share price to stockholder equity as measured on the balance sheet?

Accepted Answer

A)  Price to book value ratio 
B)  Price to sales ratio 
C)  Leverage ratio 
D)  Debt coverage ratio 
A)  Price to book value ratio 
B)  Price to sales ratio 
C)  Leverage ratio 
D)  Debt coverage ratio

Question 9

Individuals can invest in REITs:

Accepted Answer

A)  By purchasing their shares directly on an open exchange 
B)  By investing in a mutual fund that specializes in public real estate 
C)  Both A&B 
D)  Either A or B; it depends 
A)  By purchasing their shares directly on an open exchange 
B)  By investing in a mutual fund that specializes in public real estate 
C)  Both A&B 
D)  Either A or B; it depends

Question 10

Which of the following factor contributes to the price volatility of a bond?

Accepted Answer

A)  Maturity 
B)  Coupon 
C)  Yield to maturity 
D)  All of the given options 
A)  Maturity 
B)  Coupon 
C)  Yield to maturity 
D)  All of the given options

Question 11

Retirement income paid by a company is called:

Accepted Answer

A)  Rents and Profits 
B)  Social security 
C)  401(k) 
D)  Pension 
A)  Rents and Profits 
B)  Social security 
C)  401(k) 
D)  Pension

Question 12

The field of Electronic Commerce (EC) is awash with acronyms (i.e., a word formed from the initial letter or letters of a series of successive words). Which of the following acronyms does not belong with the other Electronic Commerce-related acronyms?

Accepted Answer

A)  SWIFT 
B)  CHIPS 
C)  SPECTRE 
D)  EDI 
A)  SWIFT 
B)  CHIPS 
C)  SPECTRE 
D)  EDI

Question 13

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

Accepted Answer

A)  When some clothes you like go on sale 
B)  When the interest on the loan is greater than the interest you get on your savings 
C)  When you need to buy a car to get a much better paying job 
D)  When you really need a weeklong vacation 
A)  When some clothes you like go on sale 
B)  When the interest on the loan is greater than the interest you get on your savings 
C)  When you need to buy a car to get a much better paying job 
D)  When you really need a weeklong vacation

Question 14

__________ is the accumulated refundable value of an insurance policy; results from the investment earnings on paid-in insurance premiums.

Accepted Answer

A)  Cash value 
B)  Nonforefeiture right 
C)  Decreasing term policy 
D)  Continuous premium 
A)  Cash value 
B)  Nonforefeiture right 
C)  Decreasing term policy 
D)  Continuous premium

Question 15

All of the following are the characteristics of the individual investor, EXCEPT:

Accepted Answer

A)  They are characterized by their personalities 
B)  They maintain relatively constant profile overtime 
C)  They have great freedom in what they can do with regard to investing. 
D)  They define risk as losing money. 
A)  They are characterized by their personalities 
B)  They maintain relatively constant profile overtime 
C)  They have great freedom in what they can do with regard to investing. 
D)  They define risk as losing money.

Question 16

Companies that have capitalization amounts more than $2 billion are known as:

Accepted Answer

A)  Small cap companies 
B)  Mid cap companies 
C)  Growth companies 
D)  Large cap companies 
A)  Small cap companies 
B)  Mid cap companies 
C)  Growth companies 
D)  Large cap companies

Question 17

More investors are using technical analysis now than in earlier periods because:

Accepted Answer

A)  Investors are able to know the quantitative calculations of technical analysis 
B)  More business schools are now teaching technical analysis 
C)  The Internet makes more data available to track stock prices 
D)  There is now more empirical evidence supporting technical analysis 
A)  Investors are able to know the quantitative calculations of technical analysis 
B)  More business schools are now teaching technical analysis 
C)  The Internet makes more data available to track stock prices 
D)  There is now more empirical evidence supporting technical analysis

Question 18

The responsibility of setting an estate includes:

Accepted Answer

A)  Taking possession of the property included within the descedent's estate 
B)  Valuing the estate's property 
C)  Paying any debts of the descedent's 
D)  All of these 
A)  Taking possession of the property included within the descedent's estate 
B)  Valuing the estate's property 
C)  Paying any debts of the descedent's 
D)  All of these

Question 19

A portfolio manager is evaluating investments in mortgage securities as part of a portfolio to fund long term liabilities. If she wants to minimize prepayment risk in her portfolio she is most likely to invest in:

Accepted Answer

A)  Mortgage loans 
B)  Mortgage pass through securities 
C)  Collateralized mortgage obligations 
D)  Investment evaluation 
A)  Mortgage loans 
B)  Mortgage pass through securities 
C)  Collateralized mortgage obligations 
D)  Investment evaluation

Question 20

A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.

Accepted Answer

A)  long duration 
B)  premium policy 
C)  short duration 
D)  None of the above 
A)  long duration 
B)  premium policy 
C)  short duration 
D)  None of the above

Which of the following is NOT an example of derivative security?

Which of the following in Not the flow of transaction through the claims cycle?

Which of the following is not a standard method of transferring funds when using concentration banking?

Which of the following statements hold TRUE for ask price?

__________ is a statement, preferably written, that specifies how investment capital will be invested to achieve a specific goal.

What does the abbreviation RSI stands for?

All of the following are characteristics of stop orders EXCEPT:

Which of the following is the ratio of share price to stockholder equity as measured on the balance sheet?

Individuals can invest in REITs:

Which of the following factor contributes to the price volatility of a bond?

Retirement income paid by a company is called:

The field of Electronic Commerce (EC) is awash with acronyms (i.e., a word formed from the initial letter or letters of a series of successive words). Which of the following acronyms does not belong with the other Electronic Commerce-related acronyms?

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

__________ is the accumulated refundable value of an insurance policy; results from the investment earnings on paid-in insurance premiums.

All of the following are the characteristics of the individual investor, EXCEPT:

Companies that have capitalization amounts more than $2 billion are known as:

More investors are using technical analysis now than in earlier periods because:

The responsibility of setting an estate includes:

A portfolio manager is evaluating investments in mortgage securities as part of a portfolio to fund long term liabilities. If she wants to minimize prepayment risk in her portfolio she is most likely to invest in:

A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.

Certified Regulatory Compliance Manager

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Exam 2: Certified Trust and Financial Advisor

Which of the following is NOT an example of derivative security?

Which of the following in Not the flow of transaction through the claims cycle?

Which of the following is not a standard method of transferring funds when using concentration banking?

Which of the following statements hold TRUE for ask price?

__________ is a statement, preferably written, that specifies how investment capital will be invested to achieve a specific goal.

What does the abbreviation RSI stands for?

All of the following are characteristics of stop orders EXCEPT:

Which of the following is the ratio of share price to stockholder equity as measured on the balance sheet?

Individuals can invest in REITs:

Which of the following factor contributes to the price volatility of a bond?

Retirement income paid by a company is called:

The field of Electronic Commerce (EC) is awash with acronyms (i.e., a word formed from the initial letter or letters of a series of successive words). Which of the following acronyms does not belong with the other Electronic Commerce-related acronyms?

Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

__________ is the accumulated refundable value of an insurance policy; results from the investment earnings on paid-in insurance premiums.

All of the following are the characteristics of the individual investor, EXCEPT:

Companies that have capitalization amounts more than $2 billion are known as:

More investors are using technical analysis now than in earlier periods because:

The responsibility of setting an estate includes:

A portfolio manager is evaluating investments in mortgage securities as part of a portfolio to fund long term liabilities. If she wants to minimize prepayment risk in her portfolio she is most likely to invest in:

A premium deficiency relating to which insurance contracts indicate a probable loss on premiums yet to be earned.

Certified Regulatory Compliance Manager

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