IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 211:

  Insurance industry is regulated by:

  A. State Governments

  B. Federal Government

  C. Non-Government

  D. All of these

  Correct Answer: D

• Question 212:

  The primary objective/s of ECB is/are:

  A. To maintain price stability

  B. To support the general economic policies in the community with a view to contributing to the achievement of the objectives of the community

  C. To achieve a high level of employment and sustainable and non-inflationary growth

  D. None of these

  Correct Answer: A

• Question 213:

  How many member states of the European Union are participating in the single Euro Currency?

  A. Ten

  B. Eight

  C. Twelve

  D. Fourteen

  Correct Answer: C

• Question 214:

  The second largest economic area in the world is:

  A. United States

  B. Euro Area

  C. Japan

  D. Gulf Region

  Correct Answer: B

• Question 215:

  The European Central Bank is the central bank for the Europe's single currency, the EURO. The ECB's main task is to maintain the EURO's:

  A. Distribution and stability is the EURO area

  B. Purchasing power and thus price stability in the EURO area

  C. Purchasing power and thus price downfalls in the EURO area

  D. None of these

  Correct Answer: B

• Question 216:

  The Federal Reserve System interacts with foreign central banks include:

  A. Bank of International Settlements (BIS) and European Central Bank (ECB)

  B. Bank of Investment Settlements (BIS) and European Countries Bank (ECB)

  C. Only Bank of International Settlements (BIS)

  D. None of these

  Correct Answer: A

• Question 217:

  An area of FOMC board responsibilities is the development and administration of regulation that implement major federal laws governing consumer credit, such as:

  A. Truth bending Act and the equal credit opportunity Act

  B. Home Mortgage disclosure Act and truth savings ACT

  C. Sunshine Act

  D. Only A and b

  Correct Answer: D

• Question 218:

  Federal Reserve's duties fall into following general areas EXCEPT:

  A. Conducting the nation's monetary policy

  B. Supervising and regulating banking institutions and protecting the credit right of consumer

  C. Maintaining the stability of the financial system

  D. None of these

  Correct Answer: D

• Question 219:

  The federal open market committee (FOMC) board sets reserve requirements and shares the responsibility with the reserve banks for:

  A. Interest rate policy

  B. Premium policy

  C. Discount rate policy

  D. All of these

  Correct Answer: C

• Question 220:

  In effect to protect customers from unsubstantiated or undocumented losses. NASD has some specific rules. The rules include:

  A. Registered representatives are prohibited from guaranteeing a customer's account againstloss or from sharing in the losses or gains in an account.

  B. Private transactions conducted outside the firm are prohibited.

  C. If a firm's stock is publicly traded, employees of the firm may not recommend nor solicitpurchases of the firm's stock. However, unsolicited purchases are acceptable.

  D. All of These.

  Correct Answer: D