Financial goals cove a wide range of financial aspirations such as:


These are target dates in the future when certain financial objectives are expected to be completed. What are th ...


Today’s well defined employee benefits package cover a full spectrum of benefits that may include all EXC ...


Tax deferred retirement plans and flexible spending accounts offer tax advantages. Some retirement plans allow y ...


Accumulating assets to enjoy in retirement is only part of the:


This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the em ...


Most financial planners fall into one of two categories based on how they are paid. Commission based planners ea ...


When determining the interaction between the UK and EU on the regulation of the financial services industry, the ...


A client has previously written to her former adviser opting out of any marketing activities from the firm or an ...


The Financial Services and Markets Act 2000 regulates the provision of which type(s) of financial advice.


Simon has experience of dealing with retail clients and is now in training to qualify as a pension transfer spec ...


The efficient frontier curve shows the optimum balance between:


A UK investor holds a portfolio of overseas equities and is concerned about the exchange rate risk. Which strate ...


When constructing a portfolio for a UK resident basic rate taxpayer who requires an income, the most tax effici ...


The principal reasons for using the Sharpe ratio when calculating a portfolio’s performance are:


Pauline, a basic rate taxpayer, has a portfolio which comprises of various equity and fixed interest unit trus ...


Philip took out a qualifying onshore endowment policy for 20 years which he made paidup in year 9. This means th ...


Bill, a single man, having made full use of his annual gift allowances, made a potentially exempt transfer of &p ...


On Brian’s death, his estate was valued at £820,000. He bequeathed £40,000 to a registered cha ...


Trevor is a member of a defined benefit company pension scheme. Which factor relating to his circumstances confi ...


Stephen is about to commence taking benefits from his personal pension scheme, which includes protected rights. ...


Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pens ...


Under an employer’s group life assurance policy, what is the normal tax treatment of the death benefit. ...


If an income protection insurance (PHI) policy has reviewable premiums, this usually means that the insurance co ...


Apart from comparing cover and costs, what other key factor should usually be considered if a financial adviser ...


The phase of the economic cycle when levels of employment and production are high and economy is growing, genera ...


Gross domestic product is:


It is a measure of inflation based on changes in consumer goods and services:


Inflation is a vital concern to financial planning. It affects not only what we pay for our goods and services b ...


Balance sheet and income statements that serve as essential planning tools for developing and monitoring persona ...


It’s a detailed financial report that looks forward, based on expected income and expenses.


The actual value of an asset, or the price of an asset, or the price for which it can reasonably be expected to ...


Tangible assets that are immovable: land and anything fixed to it, such as a house is a person’s:


It is actually a method of preparing financial statements in which only transactions involving actual cash outla ...


An excess amount of expense over income resulting in insufficient funds as well as in decreased net value is cal ...


Total liquid assets divided by total current debts; measures the ability to pay current debts. It is:


Total net worth divided by total assets; measures the degree of exposure to insolvency is:


Cash surplus divided by net income (after tax); indicates relative amount of cash surplus achieved during a give ...


Total monthly loan payments divided by monthly gross (before tax) income; provides a measure of the ability to ...


A cash budget is the valuable money management tool that helps you EXCEPT:


Budget control schedule is:


"Shareholder wealth" in a firm is represented by:


The long run objective of financial management is to:


What are the earnings per share (EPS) for a company that earned $100,000 last year in after tax profits, has 20 ...


A single, overall cost of capital is often used to evaluate projects because:


The cost of equity capital is all of the following Except:


If the following are balance sheet changes: $5,005 decrease in accounts receivable $7,000 decrease in cash $12,0 ...


The concept that dollar today is worth more than a dollar received in future. It is:


Rule 72 is:


On an accounting statement of cash flows an "increase(decrease) in cash and cash equivalents" appears as:


Uses of funds include a (an):


A tax structure in which the larger the amount of taxable income, the higher the rate at which it is taxed is: ...


Average tax rate:


Which of the following would be included in a cash budget.


It is the deduction of AGI based on the number of persons supported by the taxpayer’s income


Exemptions are phased out and eliminated altogether for taxpayers with high levels of AGI. After adjusting for i ...


The illegal act failing to accurately report income or deductions and in extreme cases, failing to pay taxes alt ...


It is a technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax ...


A good way to keep your spending in line is to make all household transactions (even fun money or weekly cash al ...


An account offered by credit unions that is similar to interest paying checking accounts offered by the other fi ...


It is a type of insurance account that protects funds on deposit against failure of the institution; can be insu ...


_____________ are a popular offering at bank and other depository institutions and competes for deposits with mo ...


________________ pools the funds f many small investors to purchase high return, short term marketable securitie ...


It is a formal, legal commitment to extend credit up to some maximum amount over a stated period of time.


The type(s) of collateral generally used for a secured short term loan is(are):


The investment proposal with the greatest relative risk would have:


A safe deposit box is a rented drawer in a bank’s vault. Boxes can be rented for:


Probability tree analysis is best used when cash flows are expected to be:


If two projects are completely independent (or unrelated), the measure of correlation between them is:


Managerial options can be viewed as:


Checkbook ledger:


Assume that you purchase a car for $20,000 in September. You make a down payment of $3000 and finance the remain ...


Calculating certain financial ratios can help you evaluate your financial performance over time. What’s mo ...


The amount of liquid funds will vary with your personal circumstances and comfort level. Another useful liquidit ...


Even if, the annual balances, in certain months’ expenses may exceed income, causing a monthly budget defi ...


It is the value today of an amount to be received in future; it is the amount that would have to be invested tod ...


The dues paid for membership in our society; the cost of living in this country may be referred as:


Taxable income is:


Gross income essentially includes any and all income subject to federal taxes. Here are some common forms of gro ...


An adoption tax credit of up to $11650 is available for the qualifying costs of adopting child under age 18. Onl ...


An extension of time beyond the April 15 deadline during which taxpayers, with the approval of the IRS, can file ...


A technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax bracke ...


When using a probability tree approach, we discount the various cash flows to their present value at:


A managerial option, in effect:


The presence of managerial, or real, options the worth of an investment project.


EBIT is usually the same thing as:


In the context of operating leverage break even analysis, if selling price per unit rises and all other variabl ...


This statistic can be used as a quantitative measure of relative "financial risk."


If the intrinsic value of a stock is greater than its market value, which of the following is a reasonable concl ...


Interest rates and bond prices:


The expected rate of return on a bond if bought at its current market price and held to maturity.


___________ is a type of insurance that protects funds on deposit against failure of the institution; can be ins ...


A checking account on which the financial institution pays interest; it have no legal minimum balance is called: ...


Which one of the followings is a mutual fund that pools the funds of many small investors and purchases high re ...


It is a federally insured savings account, offered by banks and other depository institutions, that competes wit ...


A comprehensive deposit account, offered primarily by brokerage houses and mutual funds is a/an:


Money market deposit account is a federally insured savings account, offered by banks and other depository insti ...


This type of risk is avoidable through proper diversification:


Specially coded plastic cards used to transfer funds from a customer’s bank account to the recipient&rsquo ...


A measure of "risk per unit of expected return."


Two people wishing to open a checking account may do so in which one of the following ways:


After opening the checking account, follow these basic procedures Except:


______________ is the result writing a check for an amount greater than the current account balance.


It is a booklet provided with a supply of checks, used to maintain accurate records of all checking account tran ...


An arrangement between the account holder and the depository institution wherein the institution automatically p ...


Diversification__________:


An order made by an account holder instructing the depository institution to refuse payment on an already issued ...


It is a check payable to a third party that is drawn by a bank on itself in exchange for the amount specified pl ...


Short term interest rates generally fluctuate ______ long term rates, so it pays to monitor interest rate move ...


Many financial planning experts recommend keeping a minimum of ____ to _____ of your investment portfolio in sav ...


This is a saving bond issued by various denominations by the U.S Treasury. These are backed by the U.S governmen ...


A systematic approach to selecting and financing a vehicle can mean significant savings. Before making any major ...


The loss in the value of an asset, such as an automobile, that occurs over its period of ownership; calculated a ...


_____________ offers the latest model used cars, provide financing, and will negotiation on price. Be sure to r ...


__________ have great impact on bond prices.


Bond interest rate is called:


Bonds usually pay interest _________ per year.


Coupon rate is paid until the bond ____________.


Bond’s par value is known as __________ value.


Time consumed in clearing a check through the banking system.


Commercial paper is essentially:


Concentration banking:


Which would be an appropriate investment for temporarily idle cash that will be used to pay quarterly dividends ...


According to the Bond Equivalent Yield (BEY) method, the yield on a $1,000, 13 week US Treasury bill purchased ...


Accounts receivable conversion (a.k.a., check conversion) is the conversion of a paper check to


It is a type of flexible mortgage where the payments increase for a specified period of time and then level off. ...


___________ is a claim upon a piece of property for the payment or satisfaction of a debt or obligation.


First mortgage is:


The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage.


_____________ is the money paid to insure the mortgage when the down payment is less than 20 percent


What can be a short term interim loan to pay for the construction of buildings and homes.


The amount of debt, not counting interest, on a loan.


Money given by a buyer to a seller, as part of the purchase price to bind a transaction or assure payment.


A legal by which a lender or a seller forces a sale of a mortgaged property.


A construction loan made during completion of a building or a project.


A mortgage which is in first lien position, taking priority over all other liens.


__________ refers to failure to meet legal obligations in a contract, specifically, failure to make the monthly ...


The difference between fair market value and current indebtedness is called:


An account held by the lender into which the home buyer pays money for tax or insurance payments.


It is a document that gives evidence of an individual’s ownership of property. What is it.


Mutual funds let you invest_________.


The fund’s investment objective can be found in:


Large value funds own__________.


___________ specializes in low cost index funds.


Small value funds own__________:


Loan funds_________:


Dollar cost averaging __________:


Large growth funds own:


Small growth funds own_______:


Which turnover rate suggests a more tax efficient funds.


A typical mutual fund doesn’t generally:


The number of mutual funds is:


Bond funds offer_________:


Mutual funds make you money through:


The 12b 1 fee covers_____________:


A________ is the time to pay your credit card bill without incurring finance charges.


An informal term for credit card is:


The total amount that you have to pay on a certain billing is:


____________ is the term used for the monthly report of all the accumulated charges.


It occurs when you don’t make full payment on your previous bill.


The least amount of money that you should pay on or before your due date is called:


You can earn a ___________ when you continuously use your credit card for purchasing stuff.


Credit cards offer ________ so you can withdraw money instantly.


In credit card payments, late payment charges occur when you only pay the minimum payment.


Dealer invoice is the amount a dealer is billed by the car manufacturer.


APR is the same as the interest rate.


Dealer holdback is an allowance:


Dealer charges include:


APR stands for:


Dealer charges include extras such as extended warranty.


In stocks, technical analysis is based on studying:


Socks that tends to periodically rise and fall are called:


High price earnings ratio often indicate that investors:


Defensive stocks:


Stock beta measures:


Penny stocks are traded on________:


Stocks of established companies are called:


Income stocks


____________ are usually expected to produce significant gains.


Fundamental analysis is based on studying:


The way in which people make, distribute, and use their goods and services is called.


Financial plans that are more than five years off are called.


The amount of goods and services available for sale is called.


Saving for vacation next summer or paying off small debts are examples of .


Spending, saving and investing to have the kind of life you want and financial security can be achieved by. ...


__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind ...


Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions ...


Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary ...


Which of the following is not a perquisite (perk).


What is the most important of the three financial management decisions.


How are earnings per share calculated.


The __________ decision involves a determination of the total amount of assets needed, the composition of the as ...


You need to understand financial management even if you have no intention of becoming a financial manager. One r ...


The __________ decision involves determining the appropriate make up of the righthand side of the balance sheet ...


Which of the following statements is correct regarding profit maximization as the primary goal.


In negotiating car prices, choosing among various makes, models, and options can make comparison difficult. You ...


It is an agreement to purchase an automobile that states the offering price and all conditions of the offer; whe ...


Once the dealer accepts your offer, you complete the purchase transaction and take the delivery of the car. If y ...


Lease is:


The most popular form of automobile lease is the one in which at the end of its term the lessee simply turns in ...


Open end lease is:


A commonly sited benefit of leasing is absence of down payment. However, today most leases require a “capi ...


A good lease contract should clearly define what is considered unreasonable. In addition, most leases requires t ...


Most auto leases include a purchase option. The annual mileage allowance is another consideration of lease term. ...


Advantages of leasing are all of the following EXCEPT:


Disadvantages of leasing are all of the following EXCEPT:


A form of direct ownership f an individual unit in a multi unit project in which lobbies, swimming pools, and o ...


An apartment in a building in which each tenant owns a share of nonprofit cooperation that owns the building. ...


A rental contract:


The maximum percentage of the value of a property that the lender is willing to loan is called:


An insurance policy that protects the mortgage lender from loss in the event the borrower defaults on the loan; ...


_________ acronym is that refers to a mortgage payment including stipulated portions of principal, interest, pro ...


The principal reason for the existence of leasing is that:


A way to analyze whether debt or lease financing would be preferable is to:


A conventional revolving credit agreement allows:


The type of lease that includes a third party, a lender, is called a(n):


One advantage of a financial lease is that:


Medium term notes (MTNs) have maturities that range up to:


A direct lease, a sale and leaseback, and a leveraged lease are all examples of:


One of the components of monthly mortgage insurance is homeowner’s insurance. Its cost varies with factor/ ...


Sale of real estate property in which the proceeds are less than the balance owed on loan secured by property so ...


Real estate commissions generally range _______ for new homes and ________ for previously occupied homes or resa ...


It is the process of arranging with a mortgage lender, in advance of buying a home, to obtain the amount of mort ...


Prequalification provides estimates of required down payment and closing costs of different types of mortgages. ...


A corporation in which you are a shareholder has just gone bankrupt. Its liabilities are far in excess of its as ...


Contingency clause:


A federal law requiring mortgage lenders to give potential borrowers a government publication describing the clo ...


Money market mutual funds:


The purpose of financial markets is to:


Which of the following is NOT an example of a financial intermediary.


How are funds allocated efficiently in a market economy.


Assume that a "temporary" additional (US federal tax related) first year bonus depreciation of 50 percent appli ...


_______ is a mortgage with a single large principal payment due at a specified future date.


Margin on an adjustable rate mortgage is the percentage point a lender adds to the index rate to determine the r ...


It occurs when a principal balance on a mortgage loan increases because the monthly loan payment is lower than t ...


Two step ARM is an adjustable rate mortgage with just two interest rates. One for the first ________ years of t ...


Fixed rate mortgages are popular with home buyers who plan to stay in their homes for at least ________ years an ...


It is a loan that allows a lender or other party to share in the appreciated value when the home is sold.


It is the mortgage that requires the borrower to pay only interest; typically used to finance the purchase of mo ...


It is the mortgage that starts with unusually low payments that rise over several years to a fixed payment.


If an investment banker has agreed to sell a new issue of securities on a best efforts basis, the issue:


In mortgage loans closing costs are made up of all of the following Except:


A preliminary prospectus is known as a:


Letter stock is:


The actual market value of a right will differ from its theoretical value for all of the following reasons Excep ...


When the investment banker bears the risk of not being able to sell a new security at the established price, thi ...


To say that there is "asymmetric information" in the issuing of common stock or debt means that:


A best efforts offering is sometimes used in connection with a of new, long term securities.


_____________ is a financing made available by a builder or a seller to a potential new home buyer at well below ...


A loan on which payments equal to half the regular monthly payments is called:


It is a guarantee offered by the U.S Veterans Administration to lenders who make qualified mortgage loans t elig ...


People typically use credit as a way to pay for goods and services that cost more than they can afford to take f ...


One can avoid the possibility of future repayment socks by keeping in mind the some types of transactions for wh ...


Lenders often look the 5 C’s of credit as a way to assess the willingness and ability of a borrower to rep ...


Sound financial planning dictates that you need a good idea of how much credit you can comfortably tolerate. One ...


Consider someone who takes home $2500 a month. Using a 20% ratio, he/she should have monthly consumer credit pay ...


Cash advance is:


A short period of time, usually 20 to 30 days, during which you can pay your credit card bill in full and not in ...


It is a bank credit card that combines features of a traditional bank credit card with an additional incentive, ...


About half of the credit cards are rebate cards, and new cards are introduced every day. In one credit card ince ...


Debit card is a card use to make transactions for cash rather than credit; replaces the need for cash or checks ...


A line of credit issued against the existing equity in a home is called:


It is a line of credit made available to an individual on an as needed basis.


Overdraft protection line is:


It is a type of open account offered by banks and other financial institutions that can be accessed by writing c ...


It is referred to an investigation that involves contacting credit references or corresponding with a credit beu ...


Using data provided by the credit applicant, along with any information obtained from the credit bureau, the sto ...


A company can ensure the complete success of a rights offering by making use of a:


Financial intermediaries:


You are considering borrowing $10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for ...


You can use to roughly estimate how many years a given sum of money must earn at a given compound annual interes ...


Loan disclosure statement is:


In a typical loan amortization schedule, the dollar amount of interest paid each period.


When n = 1, this interest factor equals one for any positive rate of interest.


For $1,000 you can purchase a 5 year ordinary annuity that will pay you a yearly payment of $263.80 for 5 years ...


To increase a given present value, the discount rate should be adjusted:


You are considering investing in a zero coupon bond that sells for $250. At maturity in 16 years it will be red ...


In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that ...


The amount of interest one pays to open credit depends_______ on the method the lender uses to calculate the bal ...


They say it pays to shop around and when it comes to credit cards that are certainly true. Regardless of which c ...


It is a form of legal recourse open to insolvent debtors, who may petition a court for protection from creditors ...


It is a legal proceeding that results in “wiping the slate clean and starting anew”; most of the deb ...


It is a professional financial advisor who assists overextended consumers in repairing budgets for both spending ...


Loans made for specific purposes using formally negotiated contracts that specify the borrowing terms and repaym ...


Collateral is a/an:


Student loans are amortized with monthly payments over a period of 5 to 10 years. To help you service the debt, ...


Single payment loan is a loan:


A loan that is repaid in a series of fixed, scheduled payments rather than a lump sum is referred to as:


In _________ the use of single payment loan to finance a purchase or pay bills in situations where the funds to ...


A firm that makes secured and unsecured personal loans to qualified individuals, also called a small loan compan ...


With continuous compounding at 10 percent for 30 years, the future value of an initial investment of $2,000 is c ...


You want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You expect annual int ...


A profitability index of .85 for a project means that:


Which of the following statements is correct.


Assume that a firm has accurately calculated the net cash flows relating to an investment proposal. If the net p ...


Two mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ra ...


If capital is to be rationed for only the current period, a firm should probably first consider selecting projec ...


The method provides correct rankings of mutually exclusive projects, when one is Not subject to capital rationin ...


In an NPV sensitivity graph, a steep sensitivity line for a particular input variable means that a in that varia ...


One potential problem with sensitivity analysis is that it generally looks at sensitivity "one variable at a tim ...


A bond issue may be retired by:


Protective covenants are:


Which of the following bonds offer the investor the most protection.


A company refunds its bonds for any of the following reasons Except for:


The call option value of a callable bond is likely to be high when:


Treasury stock is:


A call provision, a sinking fund, and/or conversion are used to retire:


Dual classes of are common in new ventures where promotional usually goes to the founders.


Palo Alto Industries has a debt to equity ratio of 1.6 compared with the industry average of 1.4. This means t ...


A legal claim permitting the lender in case the borrower defaults, to liquidate the items serving as collateral ...


It is a mortgage on personal property given as a security for the payment of an obligation.


_________ is a legal note giving to the lender the right to sell collateral if the borrower defaults on the obli ...


These are additional charges you may owe if you decide to pay off your loan prior to maturity. What are these. ...


A universal life insurance policy provides two types of death protection. The first type, known as Option A, pro ...


A method of calculating interest by computing finance charges on the original loan balance and then adding the i ...


Credit life or disability insurance is:


Sometimes, as a condition of receiving an installment loan, a borrower is required to buy credit life insurance. ...


An activity that reduces the probability that a loss will occur is called:


Loss control is an activity that:


Underwriting directly affects an insurance company’s chances of success. If underwriting standards are too ...


Just as with other aspects of personal financial planning, life insurance decision can be made easier by followi ...


Life insurance is intangible. You can’t see, smell, touch or taste its benefits and those benefits mainly ...


A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by som ...


According to multiple of earnings method, the rule of thumb used by many insurance agents is that your insurance ...


Need analysis method is a more detailed approach than multiple of earnings method. This method considers both ...


Insurance that provides only death benefits, for a specified period, and does not provide accumulation of cash v ...


It is a term life policy written for a given number of years with coverage remaining unchanged throughout the ef ...


It is a term life policy provision allowing the insured to renew the policy at the end of its term without havin ...


Decreasing term policy is:


__________ is the accumulated refundable value of an insurance policy; results from the investment earnings on p ...


Three major types of whole life policies are available. Which of the following is/are Not out of those.


Whole life insurance is a life insurance designed to offer ongoing insurance coverage over the course of an insu ...


Group health insurance is the health insurance consisting of contracts written between a group, (employer, union ...


A form of HMO in which subscribers receive services from physicians practicing from their own offices and from c ...


It’s a managed care plan that is similar to a plan that is similar to a PPO but reimburses members only wh ...


____________ is a hybrid form of HMO that allows members to go outside the HMO network for care and reimburses t ...


If you have caused an accident, which type of automobile insurance would cover damage to your own car.


Many savings programs are protected by the federal government against loss. Which of the following is Not.


Which of the following instruments is NOT typically associated with spending.


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


If you had a savings account at a bank, which of the following would be correct concerning the interest that you ...


Under which of the following circumstances would it be financially beneficial to you to borrow money to buy some ...


Retirement income paid by a company is called:


Many people put aside money to take care of unexpected expenses. If John and Jenny have money put aside for emer ...


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


If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the car ...


Maria worked her way through college earning $20,000 per year. After graduation, her first job pays $40,000. The ...


A voluntary program under Medicare that provides payments for services not covered under basic hospital insuranc ...


Prescription drug coverage is:


A universal life insurance provides two types of death protections, i.e. Type A and


It is an insurance plan designed to supplement the basic coverage of hospitalization, surgical and physician exp ...


______________ is a health insurance plan that combines into a single policy the coverage for basic hospitalizat ...


Most of the major types of health plans are sufficient to meet the protection needs of most individuals and fami ...


It is the initial amount not covered by an insurance policy and thus the insured’s responsibility; it&rsqu ...


A participation or co insurance clause stipulates that the company will pay some portion of the covered loss in ...


There is a feature which is commonly found in health insurance policies that limit the amount that will be paid ...


Several insurance provisions affect a health insurance plan’s value to you. Some important provisions addr ...


Many health insurance plans omit or offer only reduced benefits for treatment of mental disorders. For example, ...


The delivery of medical and personal care, other than hospital care, to persons with chronic medical conditions ...


___________ is a policy provision ensuring continued insurance coverage for the insured’s lifetime as long ...


Even if the policy’s requirements are met, the insured must pay long term care expenses during waiting, o ...


It is a contractual clause allowing the insured to continue insurance only at the insurer’s option. What i ...


When a family member becomes sick for an extended period, the effect on the family goes beyond medical bills. Th ...


Insurance coverage that protects real and personal property from catastrophic losses caused by a variety of peri ...


Negligence is:


What is that principle which states that an insured may not be compensated by the insurance company in an amount ...


Assume that fire destroys two rooms of furniture that were 6 years old and had an estimated useful life of 10 ye ...


Co insurance is:


The amount of insurance coverage you receive depends on the type of homeowner’s policy you buy. You can al ...


________ is an endorsement or policy providing either blanket or scheduled coverage of expensive personal proper ...


Many types of properties are covered by homeowner’s policies. These policies also define the types of loss ...


A comprehensive automobile insurance policy designed to be easily understood by the “typical” insura ...


Uninsured motorists insurance is fairly low in cost. Because, the cost of the coverage is low compared to the am ...


It is an automobile insurance that reimburses the parties involved in an accident without regard to negligence. ...


An insurance policy providing excess liability coverage for homeowner’s and automobile insurance as well a ...


What can be the possible strategy to avoid liability.


_____________ is an insurance specialist who works for the insurance company as an independent adjustor or for a ...


What is that form of investing in which future value and expected returns are highly uncertain.


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


People often put money aside, sometimes for years, to save up enough to make just one major expenditure. Here ar ...


Securities market is a market place in which stocks, bonds, and other financial instruments are traded. Such mar ...


A document made available to prospective security buyers that describes the firm and a new security issue. _____ ...


Which of the following is least likely to be considered a short term marketable security.


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


Which of the following marketable securities is issued by the U.S. federal government.


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


Which of the following statements most accurately describes the modern approach to cash management.


Collection float is the __________.


Deposit float is the __________.


Availability float is the __________.


Eurodollars are best described as __________.


Which of the following statements concerning remote disbursement and controlled disbursement is correct.


The field of Electronic Commerce (EC) is awash with acronyms (i.e., a word formed from the initial letter or let ...


Under which measurement scale is data categorized, but not ranked.


The joint probability of events A and B is 32 percent with the probability of event A being 60 percent and the p ...


An analyst is developing net present value (NPV) profiles for two investment projects. The only difference betwe ...


An equity analyst working for a growth oriented mutual fund has a tendency to misvalue the stocks of popular com ...


A portfolio manager is evaluating investments in mortgage securities as part of a portfolio to fund long term li ...


Compared to investors with long investment time horizons, investors with short investment time horizons most lik ...


A primary motivation for investment in commodities is most likely the:


A person purchased a share of Acme.com common stock exactly one year ago for $45. During the past year the commo ...


A set of possible values that a random variable can assume and their associated probabilities of occurrence are ...


A statistical measure of the variability of a distribution around its mean is referred to as __________.


The weighted average of possible returns, with the weights being the probabilities of occurrence is referred to ...


Which of the following statements regarding covariance is correct.


Total portfolio risk is __________.


It is a market condition normally associated with investor optimism, economic recovery, and expansion; character ...


______________ is a condition of the markets typically associated with investor pessimism and economic slowdown; ...


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


A broker is:


A broker who, in addition to executing clients’ transactions, offers a full array of brokerage services is ...


Which of the following id NOT the kind of Insurance.


A package of coverage including most property and liability coverage except workers’ compensation, automob ...


Fidelity bonds cover employees against dishonest acts by employees.


What provide for monetary compensation to third parties for failure by the insured to perform specifically cover ...


Excess liability:


Coverage of risks that do not fit normal underwriting patterns and that are not commensurate with standard rates ...


In which plan all activities writing automobile insurance in a state are allocated a share of the involuntary bu ...


Mutual entities, reciprocal or inter insurance exchanges, public entity risk pools are all principal kinds of: ...


The organizations in which the ownership and control of operations are vested in the policyholders are known as: ...


Which of the following is NOT the kind of public entity risk pools.


The arrangements by which pools manage separate accounts for each pool member from which the losses of that memb ...


The private pools can fall in which two categories:


Risk retention group is:


Insurance agents act as contractors in groups who express one or more entity with express authority to act for t ...


The methods used for the premium rates establishment are:


Spreading of risks among insurance entities is called:


The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is ...


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


When no tax deductions are allowed if risks are not transferred, whereas premiums paid to insurers are tax deduc ...


Insurance entities establish ___________ to investigate and settle some or all of the claims of the member compa ...


Principal objectives of state statutes are:


The reason behind, when an insurance entity may request permission from the domiciliary state regulatory authori ...


Short duration contracts provide insurance protection for fixed period and can cancel the contract at the end o ...


The contracts that are not subject to unilateral changes in its provision and requires the performance of variou ...


SAP stresses measurement of emerging earnings of a business from period to period while GAAP stresses measuremen ...


Audit risk consists of:


The maximum error in the population that the auditor is willing to accept is called:


Which risk assessment procedures are used to obtain an understanding of the entity and its environment, includin ...


The profitability of an insurance entity on a statutory basis is generally gauged by:


The combined ratio is the sum of it:


The operating ratio is the combined ratio less than the ratio of investment income, to earned premiums.


The auditor should obtain a sufficient understanding by performing risk assessment procedures to:


A process designed to provide reasonable assurance about the achievement of the entity’s objectives with r ...


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


Which control includes the procedures for system design, including the acquisition of software packages, should ...


Final approval should be obtained prior to placing a new system into operation is the activity that can be fall ...


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


Which are the types of misstatements relevant to the auditor’s consideration of fraud in a financial state ...


Which of the following may Not involve a high degree of management judgment and subjectivity and may present ris ...


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


The auditor responds to risks of material misstatements due to fraud in which of the following ways.


The Module Rule requires the insurer to provide:


The SEC rules clarify that management’s assessment and report is limited to internal control over financia ...


___________ is an unmanaged fund designed to replicates closely as possible the performance of a specified index ...


Short term portfolios are:


Audit regulatory is more reliable when it is obtained from knowledgeable independent sources inside the entity. ...


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


When policy periods expire, the premiums written are earned and are recognized as __________.


The pro rata portion of premiums written allocable to unexpired policy periods represents unearned premiums, whi ...


Tax Act states that:


An investment is the current commitment of dollars for a period of time in order to derive future payments that ...


If you commit $200 to an investment at the beginning of the year, what is your rate of return for the period. ...


Insurance coverage provides protection against other uncertainties. Health insurance helps to pay medical bills. ...


The process of managing a portfolio never stops. Once the funds are initially invested according to the plan, th ...


A sound portfolio statement helps to protect the client against a portfolio manager’s:


The investor’s objectives are his or her investment goals expressed in terms of both risk and returns. The ...


Risk tolerance is more than a function of an individual’s psychological makeup; it is affected by other fa ...


___________ means that investors want to minimize their risk of loss, usually in real terms: They seek to mainta ...


Capital appreciation is an appropriate objective when the investors want the portfolio to grow in real terms ove ...


The objective for the __________ strategy is similar to that of capital appreciation; namely, the investors want ...


Assume our typical 65 year old investor likewise has adequate insurance coverage and a cash reserve. Let&rsquo ...


Which of the following is not the correct technical indicator.


Buying power of an investor is calculated as:


Which of the following is a pattern that occurs during high volatility, when a security shows great movement wit ...


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


All of the following are sentiment indicators Except:


Which of the following analysts think that supply and demand play an important role.


All of the following are properties of stop order Except:


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


Which of the following function removes the fear of buying and selling at ripe of price.


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


Which of the following shows relationship between two moving averages of prices.


Which of the following is the current market in which all buying and selling is done on cash or margin basis. ...


Which of the following statements hold true for bid price.


In which of the following cases resistance occurs.


Which of the following represents an unusually risky stock.


Which of the following approaches is a valuation relative to financial performance measure.


Which of the following estimates are needed while applying fundamental analysis to the market.


Which of the following has the assumptions of absence of personal taxes, single period investment and riskless ...


The APT was developed in 1976 by __________.


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


Which of the following considers the size of the company and needs no adjustment for stock splits.


The practice of spreading money among different investments to reduce risk is known as _______.


Which of the following types of bonds are usually unsecured debts maturing in 20 40 years and paying semi annu ...


Which of the following involves an additional source of basis risk due to the difference between the asset being ...


Which of the following is the right to buy.


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


Which of the following bonds are high yield bonds issued by companies that are considered highly speculative bec ...


Which of the following is the right to sell.


Individuals can invest in REITs:


Securities products include: 1. Trusts 2. Annuities 3. Derivatives 4. Stocks 5. Bonds 6. Commodities 7. Mutual F ...


The objective/s of a trust department audit is/ are to:


The objective/s of trust department’s administration of corporate trust accounts include: I. Policies and ...


Personal trust accounts may be:


Trust under will is a term referred to:


The administration of personal trust accounts is primarily controlled by all of the following EXCEPT:


Which one of the following is not commonly granted trustee’s powers.


Defined benefits & defined contribution plans and individual retirement accounts are commonly administered: ...


Performance as _____________ is normally the only true trust relationship administered by a corporate trust depa ...


Charitable trust that is an irrevocable trust and that may be testamentary or inter vivos (Between living perso ...


The duties of a guardian in guardianship arrangements are similar to those of a trustee. Specifically, the guard ...


The responsibility of setting an estate includes:


Unlike trust, there is no conveyance of title to the account assets. When the ________ relationship is establish ...


To server as family and/or financial planning tool To provide for retirement To obtain favorable tax treatment T ...


Relief from administrative details and continuity are the major reasons for:


The trustee is responsible for producing a schedule of distribution which includes information as:


The accumulation phase in annuities can last from as long as:


Annuities can be purchased through the following methods EXCEPT:


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


I. Surrender Changes II. Mortality and Expense risk change III. Administrative Fees IV. Underlying funds expense ...


Guaranteed investment contracts are contracts between:


When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impa ...


A derivative with a convex payoff profile at some point before the option’s maturity is a simple plan van ...


One of the largest components of the global derivative markets and natural adjunct to the fixed income markets i ...


A gold producer wants to hedge his loses attributable to a fall in the price of gold for his current gold curren ...


An entity that purchases and sells securities on its own behalf is acting as:


Which of the following statements about the over the counter market is false.


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


____________ swaps give companies extra flexibility to exploit their comparative advantage in their respective b ...


Standard and poor’s 500 index, the Dow Jones Industrial average, or the Toronto stock Exchange index is th ...


The main objective/s of an audit of swaps is/are:


Adequate procedures and controls associated with swap transactions should exist to help minimize the risks inher ...


Occasionally, a company will issue additional shares of its stocks, called ____________, to raise additional cap ...


Customer accounts: Ensure that the firm is exercising due diligence in the opening and supervision of customer a ...


Call provisions are often part of ______________, but usually not bonds issued by ______________.


Audit objectives that apply to one sales portion are all EXCEPT:


Which of the following is not an audit objective of a commodity department.


I With reference to the granting of customer credit lines a thorough analysis of the customer’s overall ...


There are some investment companies, known as exchange traded funds or ETFS, which are legally classified as op ...


If a mutual fund has an NAV of $100 million, and investors own $10,000,000 of fund’s shares, the funds per ...


The approximate per share NAV plus any fees the fund imposes is the price:


A UIT typically issues redeemable securities (or “units”), like a mutual fund, which means:


Close end funds are traded on:


Close end funds:


One fund may invest on mostly established “blue chip” (Companies that pay regular dividends). Anothe ...


Mutual funds provide an attractive investment choice because they generally offer the following feature/s:


All of these are disadvantages of mutual funds EXCEPT:


Investors typically cannot ascertain the exact makeup of a fund’s portfolio at any given time, nor can the ...


I A gold producers wants to hedge his losses attributable to a fall in the price of gold for his current gold ...


End users need to hedge the prices at which they can purchase these commodities for instance:


Money market funds bond funds (also called “fixed income” funds), and stock funds (also called equit ...


___________ have relatively low risks, compared to other mutual funds.


Money market funds:


Some of the risks associated with bond funds are all of the following EXCEPT:


If interest rates fall, a bond issuer may decide to pay off (or “retire“) its debt and issue new bon ...


Overall “market risk” poses the greatest potential danger for investors in ____________.


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


There are different classes of mutual funds. Classes that typically do not have a front end sales load. Instead ...


Hedge funds:


Some objectives of an audit related to mutual funds might include determining that:


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


Not all misstatements will be material enough to affect the fair presentation of the financial statement. A mate ...


Which of the following bonds do not pay interest during the life of the bonds.


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


Bond prices are expressed as a percentage of:


Which of the following industry is sensitive to business cycle and price changes.


Which of the following is NOT a source of Return on Equity (ROE).


Which of the following is the theories searching the patterns in randomness.


Companies that have capitalization amounts of more than $2 billion are known as _________.


What does the abbreviation SIC stands for.


Which of the following is known as Secondary trend in Dow Theory.


All of the following are the forms of risk, EXCEPT:


In a bar chart what does the red line represents.


Red color indicates market or share price is going down


Changes in Government rules and regulation will adversely affect which of the following industry.


All of the following steps are involved in estimating the earnings stream, EXCEPT:


Which of the following is known as “Type 1" account.


Procter & Gamble is not affected by the recession in the economy; we will consider Procter & Gamble as: ...


Which of the following terms refer to the recurring and fluctuating levels of economic activity that an economy ...


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


Which of the following measures the sensitivity of an asset's price to interest rate movements, express ...


Which of the following is defined as the rate of return anticipated on a bond if it is held until the maturity d ...


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


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


Financial instrument whose return is derived from the return on another instrument is known as a (n):


Of the following statements identify the advantage of the market measures to the investor.


Which of the following is also called the Gordon’s Growth Model.


A company that might not have historical perspective in background but it will find a place in the future depend ...


The trend lines can have the following trends, EXCEPT:


Which of the following is NOT true about technical analysis.


Which of the following orders are placed prior to the execution of trade.


Which of the following is a current market in which all buying and selling is done on cash or margin basis. ...


Standard & Poor’s Composite Index is composed of how many “large” firm stocks.


Which of the following charts give the economic information on weekly or yearly basis.


Which of the following captures cash flows during the evaluation period.


What does the abbreviation RSI stands for.


Which of the following is a characteristic of cyclical stock.


Which of the following is referred to as risk free bond.


Apart from the balance sheet or retained earnings what else must the financial analyst take into consideration i ...


___________stipulate a relationship between expected return and risk.


Which of the following is an income that is the source of revenue for members or brokers.


All of the following are the causes of change in investor’s circumstances, EXCEPT:


In which of the following markets do the investor cannot short sell.


When Beta >1.0, it indicates that:


Which of the following suggests that people express a different degree of emotion towards gains than towards los ...


A form of the EMH which states that security prices fully reflect all public and private information.


Which of the following is an objective of a tax shelter.


All of the following are examples of financial assets EXCEPT.


Which of the following equation is FALSE.


Which of the following ratios will be used if portfolio’s numerous other assets systematic risk of investm ...


Which order will be executed automatically at the current bid or ask price.


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


Which of the following trading systems is used by the Stock Exchange.


The S&P 500 Composite Stock Index is favored by most institutional investors and money managers. What does S ...


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


The industries that are least affected by recessions and economic adversity are referred as which of the followi ...


Which of the following depicts a bullish trend in stock market.


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


In which of the following charts days do not matter.


In which of the following the investors look at the historical perspective.


Which one of the following is correct formula for calculating gross margin.


The circuit breaker that is applied where stock prices in the market are dropping is known as which of the follo ...


On Balance Volume one of technical indicator use _____ as base.


In which of the following accounts the trading charges are high.


Which one of the following is correct formula for calculating operating margin.


_____ do not change the collective wealth of shareholders.


Which of the following is the reason stock prices behave the way they do at resistance lines.


Which of the following ratios are of more concern for the shareholders.


Which of the following statements hold TRUE for ask price.


All of the following are characteristics of stop orders EXCEPT:


All of the following are the problems associated to the Dividend Discount Model, EXCEPT:


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


Long term directs in Dow Theory is depicted through:


Which of the following is the ratio of a company’s total market value (price times number of shares) divid ...


Which of the following take place at the expansion stage of the industry life cycle.


An investor wants to buy 100 shares of a company but due to shortage of funds investor can only 30% of the total ...


Which of the following does not pay fix income (interest/ dividend) to investors.


Which of the following is not a type of the multistage dividend discount model.


Which of the following programs propagate the ethics.


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


Of the following statement identify the advantages of market measures to the investor.


Current yield is defined as:


The trend lines can have following trends, Except:


Which of the following measures variation of the bond’s price yield curve from a straight line.


Which of the following is the basic exchange rate in the economy.


The higher the coupon on the bond:


In which of the following condition an investment is considered desirable.


Which of the following depicts a bullish trend in the stock market.


Which of the following bond will have the longest duration.


Dow Jones industrial average is composed of how many blue chip stocks.


Which of the following make use of divisor to adjust for stock splits.


Bonds and preferred stocks do not ensure:


Which of the following give payback period of investment made.


Which of the following is pattern that occurs during high volatility, when a security shows great movement with ...


Which of the following is payment to owners in stock.


Which of the following bonds may be exchanged for another asset at the owner’s discretion.


All of the following are the levels of market efficiency, Except:


High yield bonds:


Which of the following compares the magnitude of recent gains to recent losses in an attempt to determine overbo ...


Which of the following are required inputs of the present value approach.


Which of the following is NOT a test semi strong from efficiency.


Which of the following is difference between the expected return and actual return on an investment.


Which of the following tests is used to test the weak form of market efficiency.


Which of the following usually represents an unusually risky stocks.


All of the following are investment alternatives, Except:


In which of the following markets do the investors cannot short sell.


Which of the following is an average signifying the point in time when the present value of security is repaid. ...


Which of the following term is used synonymously for the equity.


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


The sensitivity of coupon price to change in its yield:


Which of the following stage offers the highest potential returns and the greatest risk.


Margin accounts are mostly used by:


All of the following are the problem associated with the Dividend Discount Model Except:


In which of the following approaches the capitalization of an income is done.


Which of the following is formula of earning per share.


Which of the following necessary in order to reduce the huge number of possible investments to a smaller number ...


Which of the following equations assume a linear relationship between price and yield.


Which of the following index is known as value weighting.


A form of EMH which states that security prices fully reflect all publicly available information is known as: ...


Which of the following moves inversely to each other.


Which of the following is the difference between an expected return and actual return on an investment.


Which of the following is the characteristic of a cyclic stock.


In which of the following cases support occur.


Which of the following is a basket of stocks that tracks a particular sector, investment, style, geographical ar ...


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


In which case resistance occurs.


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


Which of the following is the income that is the source of revenue for the members or the brokers.


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


Which of the following bonds give the issuer the right to repay the debt prior to maturity.


In order to analysis long term investment, the most suitable analysis would be:


The duration of a bond:


The interest rate stated on a bond, note or other fixed income security, expressed as the percentage of principl ...


Which of the following is a basket of shares brought for you by an asset management company.


Leverage ratios are designed to:


Which of the following ratios measure a company’s capital structure.


Brokerage fees charged by a stockbroker is an example of:


The three broad categories of financial assets are:


Companies that have capital amount of more than $2 billion are known as:


In which of the following cases the buy decision be taken.


Which of the following index is price weighted.


Which of the following is the ratio that shows that how much a company pays out in dividends each year relative ...


Which of the following statements hold true for spread.


Which of the following statements takes into account some non cash accounting items such as depreciation.


In which of the following cases the sell decision be taken.


All of the following is required to calculate the present value figure Except:


___________ are financial intermediaries that hold portfolio of securities on the behalf of their shareholders. ...


Which of the following ratios would not be used to draw a conclusion about a company’s managerial effectiv ...


Insurance policies may be classified in which of the following categories.


In which policies the contract provides for insurance coverage for a fixed period of duration and enables the in ...


If claims have been reported to the insurer after the contract period, it may several months for the insurer to ...


In which account current, for individual policies, the agent collects the premiums directly from the insureds, s ...


The agents submits to the insurance entity a statement of all policies issued or due during the current month, a ...


Who is responsible for accounting for customer remittance advices and the agent’s current account.


Changes in existing policies that may result in additional premiums or return premiums, such as increases or dec ...


In _________________, an adjustment is based on experience of an individual risk during the term of the policy a ...


Outgoing premiums less return premiums arising from reinsurance purchased from other insurance entities are call ...


Home office record maintenance methods may include:


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


The method used to account for insurance and reinsurance contracts that do not transfer insurance risk is referr ...


The subsequent measurement of the deposits is based upon whether the insurance and reinsurance contract:


In many states, a claims made insurance policy is required to:


Primary coverage involves policies written between an insurer and a customer directly.


In processing __________, many entities keep a single file for each insured event, with separate identification ...


Lines of insurance in which claims are settled relatively quickly are called:


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


What must be properly coded to meet the statutory reporting requirements of the annual statement and to provide ...


When premium income less return premiums arising from policies issued or other contracts entered into to reinsur ...


Claims adjusting involve:


___________ is contractual right of recovery that entitles the insurer to any proceeds from the disposal of dama ...


Subrogation is:


For purposes of establishing an appropriate financial statement reserve, the most important factors to consider ...


What allows an entity to eliminate the reserve that was recorded for the claim, even if it exceeded the amount p ...


Changes in payment procedures or changes in the definition of payment date for coding purposes may or may not af ...


The sum of values assigned by claims adjusters to specific known claims that were recorded by the insurance enti ...


The difference between the case basis reserves and the estimated ultimate cost of such recorded claims is known ...


Reduction for salvage is:


The estimated amount receivable from third parties from whom the insured may have the right to recover damages i ...


Which of the following is NOT the date that is the key to classify the chronology of the data.


The date on which the contract becomes effective is known as _________.


Extrapolation of historical dollars, projection of separate frequency data, use of expected loss ratios are all ...


Which projection method uses paid losses plus reserves on outstanding claims.


Average severities projection method uses various claim count and average cost per claim date on either a paid o ...


Inflation in Defense & Cost Containment (DCC) is evaluated separately and is estimated to occur at the same ...


Adjusting and Others (AO) reserves are often provided for by using the calendar year paidto paid method rather ...


Which of the following is NOT the way to make changes in variables that can be considered in the loss reserving ...


The establishment of loss reserves generally requires considerable judgment and knowledge of the entity’s ...


With which standard, the auditor’s substantive procedures must include reconciling the financial statement ...


A stock life insurance company writing both participating and nonparticipating business must follow special acco ...


The loss reserve estimate is a significant estimate in the financial statements of an uninsured entity.


Procedures for ensuring that the data used by the loss reserve specialist is completed and accurate due to:


In which of the following, Internal entity experience or information from published sources concerning recent tr ...


What method assumes that an entity’s historical experience relating to the timeliness of settlement will b ...


The method which assumes that an entity’s experience in estimating case basis reserves will be repeated i ...


A basic premise underlying the application of ____________ is that it is reasonable to assume that plausible rel ...


An entity’s practices concerning loss settlement, such as a practice of vigorously defending suits or of q ...


For reinsurance assumed, the concepts analogous to __________ are referred to as attachment points and limits. ...


A lower net retention level typically would translate into a higher vvariability of reserves.


An increase in loss reserves may lead to offset by a reduction in premiums and a decrease in loss reserves may b ...


Which of the following is Correct.


What represents the amounts needed to provide for the estimated ultimate cost of settling claims relating to ins ...


The estimated liability includes the amount of money that will be used for future payments of:


Liabilities are recognized for known claims when sufficient information has been developed to indicate the invol ...


Reporting investments, set requirements regarding matters such as location of asset and set limitations on inves ...


Asset and liability management is:


The maturity of which agreement is fixed by the contract and depends on the needs of the borrower and the willin ...


The difference between the purchase price and the repurchase price, or sale price, plus accrued interest on the ...


As defined in Accounting Standards Codification, dollar purchase agreements are the agreements to sell and repur ...


Dollar rolls differ from regular repurchase agreements due to which of the following characteristics in the secu ...


The two most common types of dollar rolls are:


The securities repurchased have the same stated interest rate as, and maturities similar to, the securities sold ...


In a yield maintenance agreement:


What limits the repurchase price to a stipulated percentage of the face amount of the certificate.


____________ agreements may contain par cap provisions that could significantly alter the economics of the trans ...


In what, securities involve in repos are not delivered on the settlement date of the agreement and the contract ...


When securities repurchased under repos commonly have a principal amount that differs from principal amount of t ...


National Association of Insurance Commissioners stated that, ___________ has no effect on the valuation of secur ...


What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial ins ...


The options for securities that insurance entities own and can deliver if the options are exercised by the optio ...


Insurance entities usually write covered call options because they consider the premium received for writing th ...


What encompasses investment income and gains and losses, as well as custody of investment and recordkeeping. ...


The evaluation and subsequent purchase or sale of investments is based on the judgment of the entity’s inv ...


The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction betw ...


___________ is the price in a hypothetical transaction at the measurement date in the market in which the report ...


The market in which the reporting entity would sell the asset or transfer the liability with the greatest volume ...


The highest and best use of the asset is ___________, if the asset would provide maximum value to market partici ...


The risk that the obligation will not be fulfilled and affects the value at which the liability is transferred i ...


Valuation technique should be used to measure fair value and is consistent with:


What uses valuation techniques to convert future amounts to a single present amount.


The amount that currently would be required to replace the service capacity of an asset is called:


A change in __________ or its application is appropriate if the change results in a measurement that is equally ...


To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consi ...


What technique uses a risk adjusted discount rate and contractual, promised, or most likely cash flows.


Fair quoted techniques used to measure fair value should maximize the use of observable inputs and minimize the ...


What is made on an instrument by instrument basis, generally when an instrument is initially recognized in the ...


Put Option is:


A private agreement to buy or sell a given quantity of an asset such as a currency, interest rate or commodity a ...


Which of the following is NOT the Asset/ Liability Management (ALM) activity.


A holistic analysis in a multi scenario framework of all significant factors that can affect an insurer’s ...


A metric is a measurement standard or yardstick for quantifying Asset/Liabilities Management (ALM) risk.


The ten largest companies account for what percent of life insurance sales in Canada.


Which of the following is NOT the category of Life and health insurers in Canada.


Which of the following is the significant requirement for ongoing regulatory reporting to the Office of the Supe ...


_____________ include financial statements and notes, both on a consolidated and non consolidated basis.


What of a life insurer’s is determined by applying factors for risk components to specific on and off bal ...


Which of the following is NOT the primary consideration for defining the capital of a company for purposes of me ...


The process of analyzing and projecting the trends of a company’s capital position given its current circu ...


Internal Control is:


Identification and documentation of the controls and policies which address the risk management issues for each ...


Which investments held by life insurance enterprises should be carried in the balance sheet at amortized cost. ...


What is the act in which the main sections are for Canadian companies and for foreign companies.


The approach in which the investment policy should “identify acceptable ranges for investments in differen ...


Investments in equities by a life insurance company may not exceed the total of


A substantial investment is defined as any investment comprising more than 15 percent of an enterprise’s v ...


The Appointed Actuary has a responsibility to express an opinion on the appropriateness of certain actuarially d ...


The nature and extent of interest rate risk, credit risk, reinsurance risk and other significant risks should be ...


_____________ is considered to be self sustaining if it is financially and operationally independent of the rep ...


In determining whether an operation is self sustaining or integrated, what you do not need to consider is:


Financial statements of a self sustaining foreign operation are translated using the current rate method whereb ...


Monetary items and non monetary items carried at market value are translated into the reporting currency at the ...


The financial statements of which accounts maintained by insurance company that must be presented separately fro ...


Most life insurance companies that are taxable in Canada fall into which one of the following classifications: ...


___________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replac ...


The deduction must be based on identification of specific doubtful amounts and is limited to the maximum of doub ...