IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 21:

  Types of commercial loans are /are:

  A. Installment loans
  B. Floor plan financing
  C. Asset-based financing
  D. Both B and C
  D. Both B and C

• Question 22:

  Unlike trust, there is no conveyance of title to the account assets. When the ________ relationship is established; legal title to the property remains with the principal.

  A. Guardianship
  B. Estate Administration
  C. Agency Services
  D. None of these
  C. Agency Services

• Question 23:

  Hedge funds:

  A. Seek to profit in all kinds of markets by pursuing leveraging and other speculative investment practices
  B. Are subject to very few regulatory controls
  C. Also have voluntarily restricted investment to wealthy investors through high investment minimums (e.g. $1 million)
  D. All of these
  D. All of these

• Question 24:

  Some objectives of an audit related to mutual funds might include determining that:

  A. Mutual fund checks are issued in accordance with firm policies and supported by valid trades
  B. Mutual fund purchases are confirmed on a timely basis
  C. Mutual fund switches are not authorized by the client
  D. All EXCEPT "C"
  D. All EXCEPT "C"

• Question 25:

  Preferred stock is similar to common stock in that it represents ownership in a corporation. Preferred stockholders generally receive as fixed dividend rate. The types of preferred stock include all of the following EXCEPT:

  A. Cumulative preferred stock
  B. Non-cumulative preferred stock
  C. Participating preferred stock
  D. Invertible preferred stock
  D. Invertible preferred stock

• Question 26:

  Defined benefits and defined contribution plans and individual retirement accounts are commonly administered:

  A. Corporate Trusts
  B. Charitable Trusts
  C. Estate Administrations
  D. Employee benefit trusts
  D. Employee benefit trusts

• Question 27:

  Personal liability covers claims for bodily injury or property damage caused by the insured. And, Medical payment provides a low level of medical payment to help avoid legal action between the insured and the injured part, regardless of whether or not the insured is legally liable for the incident. These are two major types of liability coverage provided by:

  A. Homeowner policies
  B. Term insurances
  C. Auto coverage policies
  D. Casualty insurance policies
  A. Homeowner policies

• Question 28:

  The management of index funds is _________ than the management of non-index funds, because an index fund manager only needs to track a relatively fixed index of securities.

  A. More "Passive"
  B. More "Active"
  C. Less "Passive"
  D. Relatively less "Active"
  A. More "Passive"

• Question 29:

  A derivative with a convex payoff-profile at some point before the option's maturity is a simple plan vanilla option. As the option becomes progressively more-in-the money, the rate at which the position makes money increases until a sympathetically approaches the linear payoff of the future. Similarly, as the option becomes progressively more out-of the money, the rate at which the position loses money decreases until that rate becomes zero. This is an example of:

  A. Spot rate
  B. Non linear derivate
  C. Linear derivate
  D. None of these
  B. Non linear derivate

• Question 30:

  Organization's Objectives are described in three general categories:

  A. Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external reporting
  B. Effectiveness of operations, Efficiency of strategic plans, Reliability of internal and external reporting, compliance with applicable laws and regulations
  C. Effectiveness and Efficiency of operations, Compliance with applicable laws and regulations, Monitoring and management control system
  D. Effectiveness and Efficiency of operations, Reliability of internal and external reporting, Compliance with applicable laws and regulations
  D. Effectiveness and Efficiency of operations, Reliability of internal and external reporting, Compliance with applicable laws and regulations