Exam 1: Certified Financial Services Auditor

____________insurance provides a specified benefit amount in either of the following cases: If the insured survives to the maturity date of the policy is reached. If the insured dies before the maturity date of the policy is reached.

I - In term life insurance premium increase with age no cash value. II- In whole life insurance high cost is involved if you surrender early. Usually no cash value for at least three to five years. So, may not meet short-term needs. III - Universal life insurance is also same a whole life and buyer assumes greater risk due to program flexibility. Low interest rates can affect cash value and premiums. These are the __________ of different types of life insurances.

Life insurance that can be made valid up to a certain age or period is called ___________. This insurance coverage continues up until an agreed time without having to be renewed.

_____________ funds may specialize in a particular industry segment, such as technology or consumer products stocks.

Money market funds:

Financial services organizations are challenged to provide responsible fiduciary management while:

When a bank charges off a loan as a loss, it reduces an account called the"_____________"

If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?

The actual amount of payment the annuitant pays is based on:

If a surgeon loses a hand, she may not be able to perform surgery. If she has an ____________ policy, she would be able to recover, even though she can still work as a doctor in a nonsurgical field. If she has a ____________ policy, there would be no recovery, even if the surgeon's only possible alternative is to be a tour guide.

Certificates of deposit may be:

Asset/liability management is a planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve a desired spread. A sound ALM policy must manage many types of risks such as:

Surrender charges usually apply only if the annuity has been in free:

Non-interest bearing accounts including checking accounts and escrow accounts are known as:

Foreign currency futures contracts may be legitimately traded either on a recognized futures exchange or in the ___________, which generally involves trading between large institutions such as banks and corporations.

This agreement occurs when a security is sold with an agreement to buy it back. The repurchase date is usually very short term, often one day. Dealers sell a portion of their securities to entities with cash reserves and agree to buy them back for the principal plus interest. What is this?

Unsecured bonds are not backed by assets and provide no claim on assets for bondholders These include:

Cash surrender life insurance is referred to:

When conducting an audit of securities investments, the following objectives and audit steps should be considered EXCEPT:

"Ongoing monitoring activities are conducted to periodically reassess risk and the effectiveness of control risk," is an objective of: