You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
Not categorized0%
1
2
3
4
5
6
7
8
9
10
Answered
Review
Question 1 of 10
1. Question
Which of the following factors must be considered while making a disaster recovery plan?
I. Describes the protocols to be followed in the event of a major disruption of business
II. Has no information about reestablishing operations
III. Functionality that allows the continuation of the desired operation
IV. Doesn’t allow the transfer of business capabilities
Correct
According to NFA RULE 2-38, Disaster recovery plan detailing the steps to be followed in the event of an emergency or major disruption of operation. The project is structured equally to allow the member to continue operating, restart operations or transfer their company to another member with minimal disruption to their clients, other members, and commodity futures markets.
Incorrect
According to NFA RULE 2-38, Disaster recovery plan detailing the steps to be followed in the event of an emergency or major disruption of operation. The project is structured equally to allow the member to continue operating, restart operations or transfer their company to another member with minimal disruption to their clients, other members, and commodity futures markets.
Question 2 of 10
2. Question
What are the details each FCM, SD and MSP Member and each FDM must provide NFA with?
Correct
According to NFA RULE 2-38, In the form and manner prescribed by NFA, each FCM, SD and MSP Member and each FDM must provide and keep up-to-date with the name and contact information for all key management employees as identified by NFA. Also, the location/address and telephone number of their primary and alternative disaster recovery sites must be provided by each FCM, SD and MSP Member and each FDM to NFA.
Incorrect
According to NFA RULE 2-38, In the form and manner prescribed by NFA, each FCM, SD and MSP Member and each FDM must provide and keep up-to-date with the name and contact information for all key management employees as identified by NFA. Also, the location/address and telephone number of their primary and alternative disaster recovery sites must be provided by each FCM, SD and MSP Member and each FDM to NFA.
Question 3 of 10
3. Question
Which additional details are required if each IB, CPO and CTA Member that has more than one principal?
Correct
Incorrect
According to NFA RLE 2-38, Every IB, CPO and CTA member with more than one principal must also provide NFA with the name and contact information for a second person who can be contacted if NFA is unable to reach the primary contact, and the member must update this information upon request. In the event of an emergency, these individuals must be allowed to make key decisions.
Question 4 of 10
4. Question
Which of the following activities are not allowed to a CPO member:
I. Make a direct loan
II. Make an indirect loan
III. The advance of pool assets to any entity
IV. The advance of pool assets to the CPO
Correct
According to NFA RULE 2-45, No Member CPO may allow a commodity pool to use any means of making a direct or indirect loan or advance of pool assets to the CPO or any other affiliate or entity; provided, however, that this rule does not prohibit certain specified transactions set out in the related Interpretive Notice entitled Prohibition of Commodity Pool Loans to CPOs and related entities.
Incorrect
According to NFA RULE 2-45, No Member CPO may allow a commodity pool to use any means of making a direct or indirect loan or advance of pool assets to the CPO or any other affiliate or entity; provided, however, that this rule does not prohibit certain specified transactions set out in the related Interpretive Notice entitled Prohibition of Commodity Pool Loans to CPOs and related entities.
Question 5 of 10
5. Question
Which of the following requirement(s) comes under CPO quarterly reporting requirements:
I. File CFTC Form CPO-PQR
II. Must not file NFA Form PQR
III. Must file NFA Form PR
IV. Do not file NFA Form PR
Correct
According to NFA RULE 2-46, Each CPO Member required to submit CFTC Form CPO-PQR on a quarterly basis pursuant to CFTC Regulation 4.27 shall fulfill its NFA Form PQR filing requirements by submitting CFTC Form PQR along with any additional information in the form and manner prescribed by NFA pursuant to CFTC Regulation 4.27. Moreover, Each member of the CPO shall file NFA Form PQR on a quarterly basis with NFA in the form and manner prescribed by NFA for each pool in which it operates and for which it has any reporting requirement under CFTC Regulation 4.27.
Incorrect
According to NFA RULE 2-46, Each CPO Member required to submit CFTC Form CPO-PQR on a quarterly basis pursuant to CFTC Regulation 4.27 shall fulfill its NFA Form PQR filing requirements by submitting CFTC Form PQR along with any additional information in the form and manner prescribed by NFA pursuant to CFTC Regulation 4.27. Moreover, Each member of the CPO shall file NFA Form PQR on a quarterly basis with NFA in the form and manner prescribed by NFA for each pool in which it operates and for which it has any reporting requirement under CFTC Regulation 4.27.
Question 6 of 10
6. Question
Which of the following are the unique responsibilities of a CPO Member?
I. Supervision of employees
II. Management
III. Avoiding conflicts
IV. Supervision of agents
Correct
NFA Compliance Rule 2-9 imposes on each Member a continuing duty to supervise its employees and agents closely in all aspects of their commodity interest activities. These are the unique responsibilities of a CPO member.
Incorrect
NFA Compliance Rule 2-9 imposes on each Member a continuing duty to supervise its employees and agents closely in all aspects of their commodity interest activities. These are the unique responsibilities of a CPO member.
Question 7 of 10
7. Question
From the following list of responsibilities which comes under the Members that have control over customer funds?
I. Safeguard customer fund
II. Produces financial reports with no time constraints
III. Developing a framework that deters errors
IV. Management
Correct
According to NFA Compliance Rule 2-9, Members who have control over customer funds include developing a framework to prevent errors and fraudulent activity by employees, management and third parties to safeguard customer funds, produce timely, accurate and reliable financial reports and maintaining full compliance with all regulatory requirements for controlling those funds.
Incorrect
According to NFA Compliance Rule 2-9, Members who have control over customer funds include developing a framework to prevent errors and fraudulent activity by employees, management and third parties to safeguard customer funds, produce timely, accurate and reliable financial reports and maintaining full compliance with all regulatory requirements for controlling those funds.
Question 8 of 10
8. Question
Which of the following must be taken into consideration by a CPO member when implementing an adequate internal controls system?
I. No need for documentation of written policies and procedures
II. Demonstrate its commitment to integrity
III. Compromise can be made on ethical values
IV. Have a strong control environment
Correct
According to NFA Rule 2-9, The CPO must have a strong control environment to enforce an effective internal control process. The CPO must develop and enforce written policies and procedures that are properly designed to ensure that the activities of the CPO comply with relevant NFA rules and CFTC regulations. Management also needs to demonstrate its dedication to ethics and ethical values.
Incorrect
According to NFA Rule 2-9, The CPO must have a strong control environment to enforce an effective internal control process. The CPO must develop and enforce written policies and procedures that are properly designed to ensure that the activities of the CPO comply with relevant NFA rules and CFTC regulations. Management also needs to demonstrate its dedication to ethics and ethical values.
Question 9 of 10
9. Question
Why escalation policy is needed by a firm consisting of CPO members?
Correct
According to NFA Rule 2-9, No employee, including senior management, should circumvent the internal control system of the company inappropriately. Every organization should have an escalation policy in place for workers to report to the senior management of the CPO if they feel that individuals have in any way tried to circumvent the internal control process of the CPO.
Incorrect
According to NFA Rule 2-9, No employee, including senior management, should circumvent the internal control system of the company inappropriately. Every organization should have an escalation policy in place for workers to report to the senior management of the CPO if they feel that individuals have in any way tried to circumvent the internal control process of the CPO.
Question 10 of 10
10. Question
What should be addressed in an escalation policy of a firm consisting of CPO members?
Correct
According to NFA Rule 2-9, The company’s escalation procedures should also address whether and when to report a matter to the regulator of the company.
Incorrect
According to NFA Rule 2-9, The company’s escalation procedures should also address whether and when to report a matter to the regulator of the company.
Hi, Aiden here, co-founder of Certdemy. I hope you liked it and enjoy our service. We are a group of professional who has been in your position right now – taking exams.
You have already paid for the expensive exam registration fee and it makes no sense to pay for another exam prep tool just because you are working hard on your career for your family and future.
That is why we provide all the top-notch, premium practice questions which are normally charged at over USD200 per exam preparation tools to you completely for free.
But we need your help and I am not asking for a donation. It comes with a huge running cost to hire exam professionals to craft the questions, pay for the domain, hosting fee, and web maintenance.
If this is not much to ask for, can you spend 5 seconds of your time and share our service to your favorite forums, friends & colleagues so that they can also enjoy our service and help us keep this place running? Thanks so much in advance if you have already done so!
To your success,
Aiden D. Lucas We earn a commission for each qualified sales with no additional cost to you as amazon associate