IIA IIA-CFSA Online Practice Questions and Exam Preparation

IIA IIA-CFSA Online Questions & Answers

• Question 431:

  EFRAG is the abbreviation of:

  A. European Federation Reporting Advisory group
  B. European Financial Reporting Advisory group
  C. European Financial and Replacement Advisory group
  D. European Financial Reporting Administration group
  B. European Financial Reporting Advisory group

• Question 432:

  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
  B. Effective underwriting and documentation standards

• Question 433:

  When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

  A. Accrual of interest
  B. Deferral of interest
  C. Loan losses
  D. Loan prepayments
  A. Accrual of interest

• Question 434:

  The main purposes of the audit survey are to assist with following goals and tasks EXCEPT:

  A. Develop preliminary estimates of time and resource requirements
  B. Determine whether further auditing is necessary
  C. Documenting key control activities
  D. Identify potential critical control points, control deficiencies or excessive controls
  C. Documenting key control activities

• Question 435:

  Securities lending refers to the practice of temporarily transferring securities to a borrower with the intent that the lender will buy them back at a future date. The borrower is required to return the securities to the lender, either on demand or at

  a specified time.

  A major reason for securities lending is:

  A. To circulate the issued capital
  B. To facilitate short sale
  C. To facilitate over the counter trade
  D. To fasten secondary market trading
  B. To facilitate short sale

• Question 436:

  The most common index funds tries to tracks the SandP 500 by purchasing all 500 stocks using the same percentage as the index. Other indices that mutual funds try to copy include all of the following EXCEPT:

  A. Russell 2000
  B. Wilshire 5000
  C. MCSI-EAFE
  D. None of these
  D. None of these

• Question 437:

  "A valid contract involves each party giving something of value. This exchange of value, or consideration, may take the form of money, action, or promise. For insurance contracts, the insured's consideration is the payment or premiums and a promise to fulfill the conditions of the contracts, and the insurer's consideration is the promise to pay after a loss occurs." This is related to an element in an insurance policy contract. It is known as:

  A. Agreement
  B. Consideration
  C. Competent parties
  D. Legal purpose
  B. Consideration

• Question 438:

  Whole life policies accrue a cash value that the insurer must surrender to the policyholder if the policy does not remain in force until the policyholder's death. The actual cash value payable to the policyholder in this circumstance would be:

  A. Plus any surrender charges
  B. Less any surrender charges
  C. Plus policy repayments outstanding
  D. Less any surrender charges and policy repayments outstanding
  D. Less any surrender charges and policy repayments outstanding

• Question 439:

  Which two of the following characteristics apply to universal life insurance policies?

  To provide the insured with a number of investment options. II. To provide the insured with a minimum guaranteed cash value. III. To provide a cash value fund that accumulates tax deferred. IV. To provide flexibility of both premium and death benefits.

  A. I and IV
  B. II and III
  C. III and IV
  D. I and III
  C. III and IV

• Question 440:

  In variable universal life (VUL) policies the maximum premium standard set was:

  A. To define a maximum cash value per death benefit and to define a maximum premium for a given death benefit
  B. To define a minimum cash value per death benefit and to define a moderate premium for a given death benefit
  C. To define a maximum cash value per death benefit and to define a moderate premium for a given death benefit
  D. None of these
  A. To define a maximum cash value per death benefit and to define a maximum premium for a given death benefit