Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
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 categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Which is (are) the bond-issuing government agencies?
I. Federal Farm Credit Bank
II. Federal Home Loan Bank
III. Student Loan Marketing Association
IV. Federal Home Loan Mortgage CorporationCorrect
Other bond-issuing government agencies are:
Federal Farm Credit Bank
Federal Home Loan Bank
Student Loan Marketing Association (Sallie Mae)
Federal Home Loan Mortgage CorporationIncorrect
Other bond-issuing government agencies are:
Federal Farm Credit Bank
Federal Home Loan Bank
Student Loan Marketing Association (Sallie Mae)
Federal Home Loan Mortgage Corporation -
Question 2 of 10
2. Question
Which CMO types have higher risk and return?
Correct
Targeted Amortization Class (TAC) tranches: CMO tranche with less certain payment schedule (this can be for various reasons, like prepayment or higher risk mortgages) and higher risk and return.
Incorrect
-
Question 3 of 10
3. Question
Which bond-issuing government agency(ies) makes loans to banks to cover excess credit demand due to market fluctuations?
I. Federal Farm Credit Bank
II. Federal Home Loan Bank
III. Student Loan Marketing Association
IV. Federal Home Loan Mortgage CorporationCorrect
Federal Home Loan Bank: Makes loans to banks to cover excess credit demand due to market fluctuations.
Incorrect
Federal Home Loan Bank: Makes loans to banks to cover excess credit demand due to market fluctuations.
-
Question 4 of 10
4. Question
Which bond-issuing government agency(ies) issue short- term discount notes and interest-bearing bonds with different maturities to fund Banks for Cooperative (COOPS)?
I. Federal Farm Credit Bank
II. Federal Home Loan Bank
III. Student Loan Marketing Association
IV. Federal Home Loan Mortgage CorporationCorrect
Federal Farm Credit Bank: Issues short-term discount notes and interest-bearing bonds with different maturities to fund Banks for Cooperative (COOPS), Federal Land Banks (FLB), and Federal Intermediate Credit Banks (FICB) to fund first mortgages on farm properties.
Incorrect
Federal Farm Credit Bank: Issues short-term discount notes and interest-bearing bonds with different maturities to fund Banks for Cooperative (COOPS), Federal Land Banks (FLB), and Federal Intermediate Credit Banks (FICB) to fund first mortgages on farm properties.
-
Question 5 of 10
5. Question
Which is(are) correct statements regarding Money market instruments?
I. Money market instruments are short-term debt instruments.
II. Money market instruments generally carrying low risk for your customer.
III. Money market investments usually carry a maturity of one year or less, providing liquidity should your client require it.
IV. Money market instruments are generally issued at a discount, reaching par value at maturity.Correct
Money market instruments are short-term debt instruments, generally carrying low risk for your customer. Money market investments usually carry a maturity of one year or less, providing liquidity should your client require it. They are generally is- sued at a discount, reaching par value at maturity.
Incorrect
Money market instruments are short-term debt instruments, generally carrying low risk for your customer. Money market investments usually carry a maturity of one year or less, providing liquidity should your client require it. They are generally is- sued at a discount, reaching par value at maturity.
-
Question 6 of 10
6. Question
The correct statement regarding Repos is-
Correct
Repos are loans of $1,000,000 or more with a maturity of up to two weeks and are created to benefit short-term investment goals.
Incorrect
Repos are loans of $1,000,000 or more with a maturity of up to two weeks and are created to benefit short-term investment goals.
-
Question 7 of 10
7. Question
Which is (are) the correct statement(s) regarding Negotiable certificates of deposit?
I. Negotiable certificates of deposit are defined as negotiable time deposits with a higher interest rate.
II. Negotiable certificates of deposit requires minimum investment $100,000
III. Negotiable certificates of deposit are very low-risk.
IV. Negotiable certificates of deposit can be sold to other investors if the holder requires it.Correct
Negotiable certificates of deposit are defined as negotiable time deposits with a higher interest rate due to the investment required ($100,000 is the minimum). These are very low-risk, negotiable investments — meaning they can be sold to other investors if the holder requires it.
Incorrect
Negotiable certificates of deposit are defined as negotiable time deposits with a higher interest rate due to the investment required ($100,000 is the minimum). These are very low-risk, negotiable investments — meaning they can be sold to other investors if the holder requires it.
-
Question 8 of 10
8. Question
Which is(are) the correct statement(s) regarding Commercial paper?
I. Commercial paper is a corporate investment without collateral, making it a higher risk investment.
II. The SEC does not require commercial paper to be registered.
III. This investment is issued at a discount and matures at par benefiting short-term investment goals.
IV. This is a low-risk investment.Correct
Commercial paper is a corporate investment without collateral, making it a higher risk investment. The SEC does not require commercial paper to be registered. This investment is issued at a discount and matures at par benefiting short-term investment goals.
Incorrect
Commercial paper is a corporate investment without collateral, making it a higher risk investment. The SEC does not require commercial paper to be registered. This investment is issued at a discount and matures at par benefiting short-term investment goals.
-
Question 9 of 10
9. Question
The Commercial paper matures within-
Correct
Commercial paper is a corporate investment without collateral, making it a higher risk investment. This investment is issued at a discount and matures at par, usually within 270 days, benefiting short-term investment goals.
Incorrect
Commercial paper is a corporate investment without collateral, making it a higher risk investment. This investment is issued at a discount and matures at par, usually within 270 days, benefiting short-term investment goals.
-
Question 10 of 10
10. Question
Which statement(s) is (are) incorrect regarding American Depository Receipts (ADRs)?
I. ADRs administer foreign trades.
II. ADRs are receipts for a foreign security traded in the U.S., as well as a way to buy foreign stock.
III. ADRs is not negotiable.
IV. ADR’s dividends are paid in U.S. dollars, it carries applicable currency risk, due to the conversion of foreign currency at the market price.Correct
American Depository Receipts (ADRs) With the global economy of today, trading does not simply stop at the U.S. border. In order to administer foreign trades, there are ADRs, which are receipts for a foreign security traded in the U.S., as well as a way to buy foreign stock. It is nego- tiable, which means it can be transferred or sold. Because an ADR’s dividends are paid in U.S. dollars, it carries applicable currency risk, due to the conversion of for- eign currency at the market price.
Incorrect
American Depository Receipts (ADRs) With the global economy of today, trading does not simply stop at the U.S. border. In order to administer foreign trades, there are ADRs, which are receipts for a foreign security traded in the U.S., as well as a way to buy foreign stock. It is nego- tiable, which means it can be transferred or sold. Because an ADR’s dividends are paid in U.S. dollars, it carries applicable currency risk, due to the conversion of for- eign currency at the market price.