IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 141:

  Which of the following are generally considered to be characteristics of savings deposits? Interest bearing.

  II. No stated maturity.

  III.

  Penalty for withdrawal.

  A.

  I and II only.

  B.

  II and III only.

  C.

  II and III only.

  D.

  I, II, and III.

  Correct Answer: A

• Question 142:

  The primary regulatory entities of banking industry include:

  A. Federal reserve system

  B. Office of the comptroller of the currency

  C. Federal deposit insurance Cooperation

  D. All of these

  Correct Answer: D

• Question 143:

  Commercial banks create money by:

  A. Making loans

  B. Selling government bonds to the public

  C. Placing reserves at the Federal Reserve Bank.

  D. Repurchasing their stock on the open market.

  Correct Answer: A

• Question 144:

  All the activities, mentioned below, cause rise in interest rate EXCEPT:

  A. High inflation

  B. When government borrows money

  C. When government prints money

  D. None of these

  Correct Answer: D

• Question 145:

  There may be instances of massive losses, in case of derivatives, most notably by __________________, these have not had repercussions.

  A. Long-Term Capital Management

  B. Short term capital Management

  C. Capital Management

  D. Risk and investment Management

  Correct Answer: A

• Question 146:

  Securities are divided into five categories. Type I securities are also known as:

  A. Bank eligible securities

  B. Stable obligations

  C. Mortgage related securities

  D. Marketable investment grade securities

  Correct Answer: A

• Question 147:

  Asset/Liability (ALM) is a short and long term planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve spread. A sound ALM policy must manage following types of risks EXCEPT:

  A. Credit Risk

  B. Control Risk

  C. Liquidity Risk

  D. Capital Risk

  Correct Answer: B

• Question 148:

  Banks also serves as "registrar" for stocks and bond issues. The registrar accounts for all shares issued, certificates outstanding, and Certificates cancelled. The role/s of the registrar is/are:

  A. To ensure that the transfer agent does not issue too many shares

  B. That old certificates are properly cancelled

  C. That new certificates are properly issued in the correct numerical sequence

  D. All of these

  Correct Answer: D

• Question 149:

  Pension plans that an Employer establishes for retired or disabled employees, regardless of whether an employee contributes, are known as:

  A. Defined benefit plans

  B. Guaranteed Pension benefits

  C. Pre-Pension Schemes

  D. None of the above

  Correct Answer: A

• Question 150:

  Pension Benefit Guarantee Corporation (PBGC) insures "Defined benefit plan", so employees assume _____________ for any option they contribute.

  A. Low Investment Risk

  B. High Investment Risk

  C. No Investment Risk

  D. Stable Investment Risk

  Correct Answer: C