The journey of me


Monday, January 19, 2015

FIN307: 1ST QUIZ 1ST ATTEMPT

Q: One of the major factors leading to increased emphasis of CFA code of ethics is:
A: Address the issues leading to a loss of confidence in finance sector professionals and practices

Q: An efficient financial system
A: promotes economic growth and social progress

Q: The CFA code of ethics requires members and candidates to keep client information confidential. However the principle of confidentiality does not apply when it:
A: concerns illegal activity

Q: The most significant cause of bank failure today is:
A: fraud, embezzlement, and poor management practices

Q: Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation ("Members and Candidates") are to do the following except:
A: Promote policies facilitating development of capital markets.

Q: Banker's acceptances are not
A: foreign deposits accepted overseas by branches of American banks

Q: Innovation around regulation followed by new regulation to offset the innovation is
A: the regulatory dialectic.

Q: Since the crisis of 2008, which of the following factors has further heightened the need for strict adherence to standards of professional conduct?
A: All of the listed choices

Q: Which of the following is least affected by an individual customer's profile?
A: nonprice adjustments

Q: Private or state deposit insurance funds have not successfully prevented panic because
A: they did not have a "deep pocket" with unlimited borrowing power like Congress behind them.

Q: In a standby letter of credit,
A: the bank substitutes its creditworthiness for that of its customer.

Q: Financial markets provide financial institutions:
A: all of the listed choices.

Q: Insurance or a guarantee to cover losses may create a moral hazard
A: which is an incentive to increase risk-taking by the insured.

Q: All but one of the following is associated with bank loan securitization activity?
A: the value of the securities sold to investors exceeds that of the securitized loans.

Q: A form of secured borrowing by banks is
A: repurchase agreement

Q: In general, which of the following bank investments has the least liquidity?
A: municipal bonds

Q: Deposit insurance with constant proportional premiums has
A: created a moral hazard associated with increased risk assumption.

Q: The moral hazard problem of federal deposit insurance is most associated with:
A: the incentives of managers.

Q: A commercial bank provides liquidity when it
A: All of the listed choices.

Q: In loan brokerage, the bank's spread is
A: the difference between the rate earned by the bank and the rate paid by the bank

RESULTS: 90/100

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