IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 341:

  Management of the lending institution sets a reserve for loan losses at a given point based on such factors as mentioned below EXCEPT:

  A. Number and type of loans made
  B. Quality of loans made
  C. Historical loss experience
  D. Loan portfolio
  D. Loan portfolio

• Question 342:

  Banks that performs variety of services for other bank, e.g. they make emergency loans to banks that are short of cash and clear cheques that are drawn and paid out by different banks are called:

  A. Community Banks
  B. Regional Banks
  C. Federal Reserve Banks
  D. Credit unions
  C. Federal Reserve Banks

• Question 343:

  Compliance risk can lead t[o all of the following situations EXCEPT:

  A. Diminished reputation
  B. Reduced franchise value
  C. limited business opportunities
  D. None of these
  D. None of these

• Question 344:

  Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

  A. Agreement
  B. Periodic review
  C. Competent parties
  D. Legal purpose
  B. Periodic review

• Question 345:

  Under the interagency statement when a bank recommends or sells non-deposit investment product it should inform the customer that the product is:

  A. Having high interest rate
  B. Not insured by FDIC
  C. Not a deposit or other obligation of, or guaranteed by the depository institution
  D. Only BandC
  D. Only BandC

• Question 346:

  Sarbanes Oxley and bases are:

  A. Financial service institutes
  B. Customer agencies
  C. Fraud detecting companies
  D. Regulatory reporting requirements
  D. Regulatory reporting requirements

• Question 347:

  It is a characteristic of insurance policy according to which the insured decides whether or not to pay the premium to be covered by the policy. If the insured pays the premium, the insurance coma pay is obliged to make payments as stated in the policy. What is it?

  A. Unilateral
  B. Bilateral
  C. Incontestable
  D. Adhesion
  A. Unilateral

• Question 348:

  A heath services delivery organization that offers the option its members choose to receive a service form participating or a non-participating provider which one of the following best suits to the definition?

  A. Point of service plan
  B. Health maintenance organization (HMO)
  C. Preferred provider organization (PPO)
  D. Independent practice Association (IPA) or organization (IPO)
  A. Point of service plan

• Question 349:

  Corporations, government entities and other organizations use banks as trustee to handle the ______________function associated with a stock or bond issue.

  A. Issuance and redemption of stocks or bonds
  B. Transfer and record keeping of stock or bonds
  C. None of these
  D. Both of these
  D. Both of these

• Question 350:

  Guaranteed investment contracts are contracts between:

  A. A bank and insurance company
  B. An insurance company and a corporate retirement plan
  C. A retirement plan and a brokerage house
  D. None of these
  B. An insurance company and a corporate retirement plan