IIA IIA Certifications IIA-CFSA Questions & Answers

• Question 241:

  Regulation D, an SEC rule governing the limited offer and sale of securities without registration under the securities Act of 1933, regulates private placement exemptions. Regulation D supports all of the following EXCEPT:

  A. Allows for the issuance and sale of securities to purchasers, if they qualify as accreditedinvestors

  B. Offerings are advantageous to any private company or entrepreneur because they allow anentity to obtain funding faster and to avoid the costs associated with a public offering

  C. Allows usually smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with SEC.

  D. None of these

  Correct Answer: D

• Question 242:

  "A negotiated offering in which a new issue of municipal securities is sold on an agency basis by a placement agent directly to institutional or private investors rather than through an offering to the general investing public" is referred as:

  A. Public offering

  B. Private placement

  C. over the counter trade

  D. None of these

  Correct Answer: B

• Question 243:

  Once the underwriter has reviewed all of the file documentation provided, he or she will be issued a written decision .The decision may be one of the following:

  A. Approved

  B. Suspended

  C. Denied

  D. Any one of these

  Correct Answer: D

• Question 244:

  The process of purchasing all or any part of anew issue of municipal securities form the issuer and offering such securities for sale to investors is called:

  A. Underwriting

  B. Asset revaluation reserve

  C. Hedging

  D. None of These

  Correct Answer: A

• Question 245:

  For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

  A. Savings/source of money for down payment

  B. Appraisal

  C. Credit History

  D. Only AandB

  Correct Answer: D

• Question 246:

  Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as income, hospitals will "____________" These amounts until paid.

  A. Bad debts

  B. Reserve

  C. Income expense

  D. All (Allowance for loans and lease losses)

  Correct Answer: B

• Question 247:

  To the extent that the hedged relationship ceases to be effective, the hedging instrument's gains/losses should be transferred from the reserve and recognized in:

  A. Assets

  B. Receivables

  C. Income

  D. Expense

  Correct Answer: A

• Question 248:

  Under the principles of bank accounting, loans reported as non-performing have not yet been charged off as _____________.

  A. Income

  B. Expense

  C. Losses

  D. prepaid

  Correct Answer: C

• Question 249:

  When a bank charges off a loan as a loss, it reduces an account called the"_____________"

  A. Lease payable

  B. Lease Expense

  C. Allowance of loans and lease losses

  D. Prepaid loans and lease

  Correct Answer: C

• Question 250:

  In order to avoid reputation risk; e.g. a bank that originates and sells loans into the secondary market should follow ______________ to protect its reputation in the market to support future loan sales.

  A. Proper communication channels

  B. Effective underwriting and documentation standards

  C. Regulatory requirements

  D. Disclosure requirements

  Correct Answer: B