IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 171:

  __________ allows businesses that sell durable goods such as automobiles to finance inventories. As the business sells goods, the loan advance against those goods is repaid.

  A. Term loans

  B. Short-term working

  C. capital loans

  D. Floor-plan financing

  Correct Answer: D

• Question 172:

  Banks often make loans to officers, directors, employees, and principal shareholders. Discloser of these related-party transactions is required:

  A. If they are material to the loan portfolio

  B. In relation to total stockholder's equity

  C. If they are presented as other liabilities

  D. Either A or B

  Correct Answer: D

• Question 173:

  Securities available for resale, by the bank, should be reported at:

  A. Principal value

  B. Principal value + interest rate

  C. Fair value

  D. All of these

  Correct Answer: C

• Question 174:

  Bank loans can generally be classified in several ways EXCEPT:

  A. Time loans are made for a specific time period

  B. Demand loans have fixed maturity dates and also may be payable on demand of the lender

  C. Installment loans require periodic principal

  D. Line-of-credit arrangements allow the borrower to borrow up to a maximum limit for aspecific period.

  Correct Answer: B

• Question 175:

  It should be an immediate decision:

  A. That securities are for trading or for bank's own investment account

  B. That how to record securities in the financial statements

  C. That marketable securities should be accounted for at current market value

  D. Both of these

  Correct Answer: B

• Question 176:

  Banks should account for trading securities at market value. Any changes in cost should be regarded as a/ an:

  A. Realized gain

  B. Unrealized loss

  C. Unrealized gain or loss

  D. none of these

  Correct Answer: C

• Question 177:

  Trading securities are securities that a bank intends to sell within a short period, usually less than:

  A. Quarter

  B. Two months

  C. One month

  D. Twenty days

  Correct Answer: C

• Question 178:

  Time deposit transactions are recorded in:

  A. Computer-generated ledger sheets and customer pass books

  B. Computer-generated ledger sheets

  C. Repos

  D. Reverse Repos

  Correct Answer: A

• Question 179:

  The types of accounts that bear interest include savings accounts, negotiable orders of withdrawal (NOW) accounts, and certificates of deposit. These interest bearing accounts are known as:

  A. Interest bearing deposits/accounts

  B. Time deposits

  C. Both A and B

  D. Due from balances

  Correct Answer: C

• Question 180:

  Repos and Reverse repos govern instances such as: A. When a bank invests excess funds by buying securities from another bank or securities dealer

  B. When a bank withdraws excess funds by selling securities to another bank

  C. Both A and B

  D. None of these

  Correct Answer: A