• 21 NOV 20
    • 0

    please answer the question correct if not i will loss points

    Here is the Unit #1 Weekly Quiz Answer Sheet that you should submit to your Unit #1 Homework Assignment Folder.

    Please submit your Unit #1 Quiz Answer Sheet in MS Word format with the following file name: LastNameFirstInitial_Unit 01_QuizAnswerSheet.docx. For example, if you name is John Smith, the file name of your Answer Sheet should be SmithJ_Unit01_QuizAnswerSheet.docx.

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    NAME: _____________________________________

    Question Number



    Describe and Investment Policy Statement (IPS):

    An IPS details the organization’s procedures for all client investments

    An IPS is created by the Board of Trustees

    An IPS is a FINRA required document

    An IPS addresses the objectives of the client or pension plan


    Which of the following are deposit-taking institutions (DTIs)?

    Building societies

    Insurance companies

    Investment trust companies

    Retail banks

    Pension funds

    DTIs are the following:

    2 – 4

    1 and 4

    1 and 2

    3 – 5


    All of the following make an IPS important, EXCEPT:

    Helps define all associated parties of their responsibilities

    Sets target asset allocations

    Will remove all emotions from the investment process

    Helps identify potential risks the pool of assets may face


    Which of the following is the reason why economic sticklers would not consider shares / equities as financial instruments:

    Shares represent part-ownership in the company and are not redeemable

    Companies can re-purchase their shares

    Preferred shares are closer to debt instruments

    Companies can have debt and shares, they are substitutes for each other


    Which of the following are functions of a financial system?

    The operation of a payment system

    Providing the means of portfolio adjustment

    Helping to reduce unemployment

    Channelizing funds between lenders and borrowers

    Helping speculators to bet on price movements

    Functions of a financial system include:

    1, 2, and 4

    2, 3, and 5

    2 – 5

    1 and 5


    Which of the IPS’s factors would change if the client went to another financial professional?

    Investment strategies

    Amount invested by the client

    Responsibility for the risk management

    Client objectives


    Derivatives can be strictly defined as

    Financial instruments

    Securities with strong economic foundations

    Contracts that may lead to profits or losses

    Representatives of “claims” of holders on issuers


    Which one of the following is the definition of an Investment Policy Statement (IPS)s:

    A Specific document to govern investing activities

    An agreement about services and prices

    An engagement letter for investing services

    Protects the client from investment losses


    Constructing and IPS is the responsibility of

    Financial professional


    Financial professional and investor

    Portfolio manager


    How would you classify an Exchange Traded Fund (ETF)?

    Collective investment scheme (CISs)

    Alternative investments

    Contractual intermediaries

    Quasi-financial intermediaries (QFTs)


    The most important component of an IPS is:

    Statement of purpose

    Investment objectives and constraints


    Signature of the investor


    A well-defined IPS should include of the following, EXCEPT:

    Investment strategy and asset allocations

    Definition of duties and objectives

    Purpose and scope

    How much should be invested

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