Professional Documents
Culture Documents
Day-1 / Quiz -1
1. Specific needs of high net worth individuals and general retail investors
that cannot be met by standardised financial instruments available in the
market are met with _____________________.
A. Derivatives
B. Collective Investment Schemes
C. Structured Products
D. None of the above options
6. Which details about the client are necessary to obtain for an adviser to
the able to determine the client needs?
A. Assets and Liabilities
B. Family assurance or protection plans
C. Family circumstances
D. Health status
E. Future plans and expectations
F. All of the above
10. An advisor has a fiduciary duty to the client that requires him to observe
the highest standards of personal conduct and fully respect the
confidence and trust implicit in that relationship.
A. True
B. False
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11. Which of the following is NOT the responsibility of an investment advisor -
wealth manager?
A. Help clients to decide on and prioritise objectives
B. Document the client
C. Determine and agree an appropriate investment strategy
D. Maximising client returns by investing in potentially high return
investments
E. Act on behalf of the client
F. Where agreed, to keep the products under review.
Day-1 / Quiz -3
12. Which of the following products are targeted at High Net Worth
Individuals (NRIs)?
A. Relationship banking
B. Private banking
C. Preferred Banking
D. Priority Banking
E. Wealth Management
F. All of the above
13. Which of the following is true of the scope of operations of a typical large
retail bank?
A. It will not offer additional products like asset management and
insurance
B. It will offer additional products like asset management and
insurance
C. It will offer insurance but not asset management
D. It will offer asset management but not insurance
14. This is done for ensuring that an individual takes appropriate steps to
ensure that their accumulated wealth passes to their intended
beneficiaries and in as tax-efficient a method as possible.
A. Tax planning
B. Estate planning
C. Trust planning
D. Beneficiary planning
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15. Which of the following does not reflect a sub-category of client in wealth
management?
A. Mass retail
B. Mass affluent
C. High net worth
D. Ultra high net worth
16. The creation of various products with combinations of risk and returns is
important to __________________.
A. Savers looking to invest
B. Businesses looking for various forms of capital
C. Both savers as well as businesses
D. Show that the economy is vibrant
17. Services of this category of banks are normally targeted at clients with a
certain minimum sum of investible cash or minimum net work.
A. Commercial banks
B. Investment banks
C. Public banks
D. Private banks
18. Which of the following range of offerings reflect the select world of wealth
management?
A. A narrow range of products
B. A wide range of products
C. A select range of products
D. A few high end products
Day-1 / Quiz - 4
19. The ________________ market provides capital to the issuer and the
____________ market provides liquidity to the investors.
A. Primary / Secondary
B. Secondary / Primary
C. Primary / Primary
D. Secondary / Secondary
E. None of the above
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20. The source of capital when business is proven to be technically viable but
commercial production is yet to begin is _________________.
A. Angel investors
B. Venture capitalists
C. Private equity
D. IPO market
24. If a company has totally 1000 shares and Mr. X owns 250 of them, then
___________.
A. He is 250% owner.
B. He is 2.5% owner
C. He is 25% owner
D. He has full ownership
E. He has no ownership
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26. As a wealth management professional an assessment of the direction of
the economy ________________.
A. Adds to the confusing excess of information already prevalent
B. Helps target clients
C. Helps access investment strategies and asset allocation.
27. The decision to allocate your investments among various asset classes is
known as _________________.
A. Asset allocation
B. Stock picking
C. Class allocation
D. Class grouping
Day - 2 / Quiz - 1
29. The financial services provider engaged in selling mutual fund units is
known as _________________.
A. Sell-side
B. Buy-side
30. Which part of the investment bank brokerage house interacts with
clients in the trade life cycle?
A. Front office
B. Middle office
C. Back office
D. All of the above
E. None of the above
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31. This mechanism enables the entire trade process for capital markets and
payment transactions to be conducted electronically without the need for
re-keying or manual intervention - subject to legal and regulatory
restrictions.
A. Straight-Through-Processing (STP)
B. Central Counter-party Clearing (CCP)
C. SWIFT
D. Financial Information Exchange (FIX)
32. Which of the following differentiates the exchange system from other
types of the market?
A. Availability of Trade Settlement
B. Guaranteed Trade Settlement
C. Services of Broker-Dealers
D. Electronic Trading Platforms
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36. This refers to any trading platform or method by which the firm
completes buy-sell orders in the market place.
A. Trading system
B. Buying system
C. Selling system
D. Margin system
37. Which part of the Investment bank brokerage house is responsible for
risk management and order routing?
A. Front office
B. Middle office
C. Back office
38. Which of the following can be potential reason for trades fail?
A. Instructions not received by custodians
B. Instructions remain unmatched on value date
C. Insufficient cash collateral credit line
D. Insufficient securities
E. All of the given options
Day - 3 / Quiz - 1
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41. This is the price at which investors can enter or exit an open ended fund.
A. Fund value
B. Sum of stocks value
C. Net investment value
D. Net Asset value
44. This allows investors to buy an entire basket of stocks through a single
security.
A. Provident
B. Exchange Traded Funds (ETF)
C. Hedge Fund
D. Pension Fund
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47. For managing the fund, the Hedge Fund Manager charges ____________.
A. Fund Management Fees
B. Share in Profits
C. Both
D. None of the above
48. Hedge Funds are not marketed to private individuals because they are
considered too risky for the less financially sophisticated investors.
A. True
B. False
50. The fund that invests primarily in stocks of particular sectors such as IT
or Pharma etc., is known as ________________.
A. Cash Fund
B. Index Fund
C. Sectoral Fund
D. Equity Fund
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53. These are the high risk funds which try to perform regardless of market
situations.
A. Mutual Funds
B. Pension Funds
C. Hedge Funds
D. Exchange-Traded Funds
Day - 3 / Quiz - 2
55. Exchange of securities against funds when the large financial institutions
transact (bought or sold) securities is typically carried out by
___________________.
A. Custodial banks
B. Exchange
C. Depositories
57. The entity processing cross border securities trades keeping financial
assets safe and servicing the associated portfolios is __________.
A. Depository
B. Global Custodian
C. Exchange
D. Regulator
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58. The main Central Securities Depository in the U.S. is the
___________________, which is responsible for corporate stock, bonds,
municipal bonds and money market instruments.
A. Euroclear
B. JASDEC
C. LCH.Clearnet
D. Depository Trust Company (DTC)
60. Which of the following services are provided by the Custodian Banks?
A. Settlement Services
B. Asset Services
C. A and B
D. None of the above
61. Which of the value added services do custodians provide to their clients?
A. Valuation
B. Performance Management
C. Tax reclaims processing
D. Compliance reporting
E. Securities Lending
F. All of the above
Day - 4 / Quiz - 1
Page 12 of 19
63. The Corporate Actions that have a direct financial impact on the
shareholders and bondholders is called ________________.
A. Cash CA
B. Non-Cash CA
C. One-Off CA
D. None of the above
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68. When a company announces a corporate action registered shareholders
are informed about the event by the companys __________________.
A. Investment banker
B. Broker
C. Company Secretary
D. Registrar
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73. This is a type of Corporate Action initiated by the corporation that affects
all shareholders and participation of shareholders is mandatory.
A. Mandatory CA
B. Voluntary
C. Mandatory with Options
D. Statutory CA
74. Company ABC Inc., goes in for a spin-off of its telecom infrastructure
subsidiary. What type of corporate action is ABC Inc., going in for?
A. Return of Profits
B. Influence the stock price
C. Corporate Restructuring
75. A centralised location in which security certificates are placed and stored
for later transfer is known as __________________.
A. Central Depository
B. Custodian
C. Exchange
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79. The value of the collateral can change due to
A. Change in the market prices only
B. Change in current rates only
C. Both of these where cross border exposures are involved
81. When a custodian lends securities as agent of more than one customer,
segregation refers to ________________.
A. Keeping securities separate in a physical sense
B. Knowing which securities are the subject of lending in a legal
sense
C. Keeping securities in a legal sense
D. Knowing which securities are the subject of borrowing in a legal
sense
83. Which of the following asset does not qualify as collateral for the purpose
of Securities Lending?
A. Cash
B. Securities
C. Assets in kind
D. Letter of Credit
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85. Who among the following are not the lenders of securities (on the supply
side of the securities)?
A. Investment funds
B. Pension funds
C. Prime Brokers
D. Insurance Companies
86. Who among the following are typically the end users of the borrowed
stocks?
A. Hedge funds
B. Mutual funds
C. Proprietary traders
D. All of the given options
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90. Which of the following represents lowest risk?
A. A highly diversified portfolio of high risk instruments
B. Owning a single stock
C. A thinly diversified portfolio of high risk instruments
D. Owning a randomly selected portfolio of stocks
92. Between a AAA rated bond and a BBB rated bond which of the following
is true?
A. AAA is safer and BBB will provide lower returns
B. BBB is safer and AAA will provide lower returns
C. AAA is safer and BBB will provide higher returns
D. BBB is safer and AAA will provide higher returns
Page 18 of 19
96. The challenge in portfolio rebalancing is in finding _______________.
A. When to buy and sell
B. A portfolio manager who knows this concept
C. Assessing inflexion points in the market
D. The best investment strategy
100.
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