Page 1 out of 60. Viewing questions 1-15 out of 894
Question 1
Financial goals cove a wide range of financial aspirations such as:
A.
Controlling living expenses
B.
Meeting retirement needs
C.
Setting up a savings and investment program
D.
All of the above
Answer:
D
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Question 2
These are target dates in the future when certain financial objectives are expected to be completed. What are these?
A.
Goal dates
B.
Target dates
C.
Due dates
D.
Financial dates
Answer:
A
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Question 3
Today’s well-defined employee benefits package cover a full spectrum of benefits that may include all EXCEPT:
A.
Long -term care insurance
B.
Dental and vision care
C.
Subsidized employee benefit plan
D.
Partial retirement plans
Answer:
D
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Question 4
Tax deferred retirement plans and flexible spending accounts offer tax advantages. Some retirement plans allow you to__________ against them.
A.
Lend
B.
Borrow
C.
Spend
D.
None of the above
Answer:
B
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Question 5
Accumulating assets to enjoy in retirement is only part of the:
A.
Long-term financial planning process
B.
Short-term financial planning process
C.
Life time financial planning process
D.
Permanent financial planning process
Answer:
A
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Question 6
This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the employee spends that money for benefits selected from a menu covering everything from child care to health and life insurance to retirement benefits.
A.
Flexible benefit plan
B.
Cafeteria plan
C.
Short-term financial plan
D.
Both of the above are one and the same
Answer:
D
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Question 7
Most financial planners fall into one of two categories based on how they are paid. Commission based planners earn commissions on the financial products they sell, whereas ______________ charge fees based on the complexity of the plan they prepare.
A.
Free only planners
B.
Commission based planners
C.
Professional planners
D.
Security planners
Answer:
A
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Question 8
When determining the interaction between the UK and EU on the regulation of the financial services industry, the UK government must always
A.
seek approval from the European Commission before implementing any new regulations.
B.
implement new EU Directives by passing acts of Parliament.
C.
accommodate all EU Decisions in UK legislation.
D.
provide copies of new regulation to the European Commission within a reasonable period of time for their approval.
Answer:
B
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Question 9
A client has previously written to her former adviser opting out of any marketing activities from the firm or any third parties. However she continues to receive direct investment offers from the firm. She should complain based on the firm not complying with which set of regulations?
A.
Conduct of Business rules.
B.
Data Protection Act 1998.
C.
Distance Selling Regulations.
D.
Treating Customers Fairly.
Answer:
B
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Question 10
The Financial Services and Markets Act 2000 regulates the provision of which type(s) of financial advice?
A.
Advice to vulnerable individuals only
B.
Advice to all individuals
C.
Advice to all individuals and group personal pensions schemes only
D.
Advice to all individuals unless they are elective professional clients
Answer:
B
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Question 11
Simon has experience of dealing with retail clients and is now in training to qualify as a pension transfer specialist. As a consequence, which of the following statements are true?
A.
He must have at least 3 years experience as an adviser before his training can commence
B.
His firm is allowed to impose a time limit on completion of the qualification
C.
His supervisor must also be suitably qualified
D.
Once qualified, CPD requirements are waived for 12 months
E.
Once qualified, records of his training must be maintained for at least 5 years
Answer:
B, C
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Question 12
The efficient frontier curve shows the optimum balance between:
A.
Risk and return
B.
Return and taxation
C.
Taxation and risk
D.
Inflation and return
Answer:
A
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Question 13
A UK investor holds a portfolio of overseas equities and is concerned about the exchange rate risk. Which strategy could he use to mitigate this risk?
A.
Arbitrage
B.
Gearing
C.
Hedging
D.
Pound cost averaging
Answer:
C
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Question 14
When constructing a portfolio for a UK resident basic-rate taxpayer who requires an income, the most tax efficient solution would be achieved by:
A.
Only investing in offshore products
B.
Holding fixed-interest funds within a stocks and shares ISA
C.
Purchasing National Savings & Investments (NS&I) Fixed-Interest Savings Certificates
D.
Holding high-yielding equities within a stocks and shares ISA
Answer:
B
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Question 15
The principal reasons for using the Sharpe ratio when calculating a portfolio’s performance are:
A.
It indicates the percentage return above/below the risk-free rate for each unit of risk taken
B.
It will always be quoted on a rolling quarterly basis
C.
A positive Sharpe ratio will always guarantee positive returns
D.
The higher the number, the more a portfolio manager can be said to have added value