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.
If you have any questions or comments, please do not hesitate to contact me.
NAME: _____________________________________
|
Question Number |
Question |
|
1 |
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 |
|
2 |
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 |
|
3 |
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 |
|
4 |
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 |
|
5 |
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 |
|
6 |
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 |
|
7 |
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 |
|
8 |
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 |
|
9 |
Constructing and IPS is the responsibility of Financial professional Investor Financial professional and investor Portfolio manager |
|
10 |
How would you classify an Exchange Traded Fund (ETF)? Collective investment scheme (CISs) Alternative investments Contractual intermediaries Quasi-financial intermediaries (QFTs) |
|
11 |
The most important component of an IPS is: Statement of purpose Investment objectives and constraints Appendices Signature of the investor |
|
12 |
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 |