IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 231:

  I- Loan Processing II- Claims Processing III- Applicating IV- Credit and Collection V- Reconciliations VI- Account Payments VIII- Time and Expense Reimbursement IX- Vendor Payments X- Payroll

  These all are the services included in:

  A. Back office operations

  B. Offshore Operations

  C. Tax-free export zones

  D. None of these

  Correct Answer: A

• Question 232:

  Some organizations will strive to simply with the law; others will use the Act as an opportunity to further

  promote treasury best practices. Specific areas of opportunity include all of the following EXCEPT:

  A. Identifying control points/issues and improving control processes

  B. Improving financial reporting and support processes

  C. Strengthening global governance activities

  D. None of these

  Correct Answer: D

• Question 233:

  Most certificates are held by the depository trust company as custodians for the trustee for the benefit of the certificate holders, and the notice of book entry is made to the certificate holders simultaneously with the distribution. The actual certificates, but instead only possess a record of ___________.

  A. Where they are?

  B. What they have?

  C. When they purchased?

  D. All of these

  Correct Answer: A

• Question 234:

  Which of the following should be the next step after the structuring process in order to complete the securitization process?

  

  A. Credit management

  B. Credit operations

  C. Credit Enhancement

  D. Credit deployment

  Correct Answer: C

• Question 235:

  ______________ includes provision provided by issuers to reduce risk in CMBS in a securitized process.

  A. Structuring

  B. Underwriting

  C. Credit Enhancement

  D. Collateral pool

  Correct Answer: C

• Question 236:

  A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out "or foreclosure process. There are various scenarios typical for determining special servicers; as mentioned below, EXCEPT:

  A. Those seller/issuers retaining the first-loss piece

  B. Those investing in "B" pieces in return for special services rights.

  C. Those appointed solely because of risk-management expertise.

  D. None of these

  Correct Answer: C

• Question 237:

  IF a securitization transaction meets FAS 125 sale or servicing criteria, the seller must recognize any gain or loss on the sale of the pool immediately and carry any retained interests in the assets sold ( including servicing rights/obligation and interest-only strips) at ____________.

  A. Principal value

  B. Fair value

  C. Premium Amount

  D. Both AandC

  Correct Answer: B

• Question 238:

  Recent turmoil in the financial markets illustrate the volatility of the secondary market for subprime loans and the significant liquidity risk incurred when originating a large volume of loans intended for:

  A. IPO

  B. Securitization and sale

  C. Loans

  D. All of these

  Correct Answer: B

• Question 239:

  The term used to describe the process of raising funds through the sale of securities is called:

  A. D. Securitizations

  B. C. Securitizations

  C. Securitizations and sales

  D. Subprime loans

  Correct Answer: B

• Question 240:

  Underwriting decisions are more influenced by what underwriters think they can sell to the public than _____________.

  A. Quality of the company

  B. Judgment in picking the IPO

  C. Estimated profit/gains

  D. Both AandC

  Correct Answer: A