IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 121:

  Insurance in law and economics, is a form of risk management primarily used to:

  A. Hedge again risk of potential financial loss
  B. Lock the risk of potential financial losses
  C. Both the statements are one and the same
  D. None of these
  C. Both the statements are one and the same

• Question 122:

  Five internal control components are:

  A. Control environment, Risk assessment, Control activities, Information and communication and Monitoring
  B. Control environment, Risk assessment, and Operational control, Information and communication and Monitoring
  C. Control environment, Risk Prioritization, Control activities, Information and communication and Monitoring
  D. Control environment, Risk Prioritization, Control activities, Information and communication and Monitoring
  A. Control environment, Risk assessment, Control activities, Information and communication and Monitoring

• Question 123:

  Interest rate risk arises from differences between the timing of rate changes and the timing of cash flows ( _________ );from changing rate relationships among different yield curves affecting bank activities ( ____________ ); from changing

  rate relationship across the spectrum of maturities ( ____________ );and from internet-related options embedded in bank products ( _____________ ).

  Choose the appropriate set.

  A. Repricing risk, basic risk, yield curve risk and option risk
  B. Basic risk, yield curve risk, option risk and Repricing risk
  C. Repricing risk option risk, yield curve risk, and basic risk
  D. Basic risk, yield curve risk, option risk and repurchasing risk
  A. Repricing risk, basic risk, yield curve risk and option risk

• Question 124:

  __________ is a tool to transfer qualified investments from one account to another. In order to retain certain special tax treatments, funds may not be co-mingled with other types of assets, including other IRAS.

  A. Rollover IRA
  B. simple IRA
  C. Conduit IRA
  D. SEP IRA
  C. Conduit IRA

• Question 125:

  Which one of the following is common misinterpretation during the calculation of VaR

  A. The VaR calculation is based on an assumption that the portfolio is held constant over thetime interval in practice are actively managed so that as adverse condition develop actions will be taken to mitigate losses As a result the true probability of a lose as large as that predicted may be much less then Fore cast
  B. The VaR Forecast is based on what has happened in the past If the future is not like the past the realized losses may be the lager (or smaller then predicted)
  C. There is a tendency to interpret VaR as the largest loss that has on X percent probability of being exceeded. The largest that loss that may occur will not be too much larger than the aR, while for other portfolios (particularly those including highly levered derivatives), it may be many times greater than the VaR.
  D. All of the above.
  D. All of the above.

• Question 126:

  ___________ are investment securities that do not fall under one of the other types of securities. Examples of these are Type III securities including corporate bonds and municipal bonds.

  A. Type II Securities
  B. Type III Securities
  C. Type I Securities
  D. Type IV Securities
  A. Type II Securities

• Question 127:

  It provides additional living expenses when the home is unlivable, so home owners can continue to live comfortably. While the home is made livable, the homeowner policy will pay for items such as rented rooms at a hotel, restaurant meals, and laundry expenses. What is it?

  A. Dwelling
  B. Personal property
  C. Loss of use
  D. Medical coverage
  C. Loss of use

• Question 128:

  COBIT (Control Objectives for Information and Related Technology) is based on existing Information Systems Audit and Control Foundation, control objectives enhanced with existing and emerging international technical, professional, regulatory, and industry-specific standards. COBIT has four domains or high-level classifications. Which is of the following is NOT out of those domains?

  A. Planning and organization
  B. Acquisition and implementation
  C. Delivery and support
  D. Evaluation
  D. Evaluation

• Question 129:

  Issuance of licenses to insurance agents is one of the responsibilities of:

  A. European Central bank (ECB)
  B. National Association of Issuance Commissioners
  C. Insurance Commission
  D. Securities and Exchange Commission
  D. Securities and Exchange Commission

• Question 130:

  Here are the following major types of long-term disability policies EXCEPT:

  A. Non-cancelable policies
  B. Guaranteed renewable policies
  C. Periodically renewable disability policy
  D. Conditionally renewable policies
  C. Periodically renewable disability policy