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
When shall the name of other forex counterparties be disclosed in the document?
Correct
The name of the counterparty not registered as a Futures Commission Merchant or RFED shall be disclosed in the document. The U.S. financial institutions, certain FCM affiliates, and financial holding companies as defined by the Bank Holding Company Act of 1956 are considered as other eligible counterparties.
Incorrect
The name of the counterparty not registered as a Futures Commission Merchant or RFED shall be disclosed in the document. The U.S. financial institutions, certain FCM affiliates, and financial holding companies as defined by the Bank Holding Company Act of 1956 are considered as other eligible counterparties.
-
Question 2 of 10
2. Question
Which of the following is not included in disclosing the summary of the description of each major CTA?
Correct
The respective percentage of pool assets must be disclosed in a summarized form provided it is allocated to each major CTA. It shall also indicate a summary of the description of the nature and operation of the trading programs. This includes the types of interests traded pursuant to such programs. The historical experience of the major CTA is to be disclosed in the document in a summarized form.
Incorrect
The respective percentage of pool assets must be disclosed in a summarized form provided it is allocated to each major CTA. It shall also indicate a summary of the description of the nature and operation of the trading programs. This includes the types of interests traded pursuant to such programs. The historical experience of the major CTA is to be disclosed in the document in a summarized form.
-
Question 3 of 10
3. Question
Which of the following discusses the characteristics and risks of standardized security futures contracts traded on regulated U.S. exchanges?
Correct
When it comes to the standardized security futures contracts traded on regulated U.S. exchanges, the disclosure statement shows the characteristics and risks of it. The customers must be aware of what is in this document. This document also shows the selected commission and fees that may have a decrease in their net gains or an increase in the customer’s net losses. Tax consequences are not included because they may vary for each customer.
Incorrect
When it comes to the standardized security futures contracts traded on regulated U.S. exchanges, the disclosure statement shows the characteristics and risks of it. The customers must be aware of what is in this document. This document also shows the selected commission and fees that may have a decrease in their net gains or an increase in the customer’s net losses. Tax consequences are not included because they may vary for each customer.
-
Question 4 of 10
4. Question
Which of the following shall be obtained by such members from customers permitting the lending of securities?
Correct
In Customer Protection also known as the Permissible Use of Customers’ Securities, one thing that is included here is the authorization to lend the margin securities of customers. In lending securities, no member shall lend such securities that are held on margin for a customer and that are qualified to be promised or lent. A member can lend securities unless written authorization is obtained from a customer authorizing the lending of such securities.
Incorrect
In Customer Protection also known as the Permissible Use of Customers’ Securities, one thing that is included here is the authorization to lend the margin securities of customers. In lending securities, no member shall lend such securities that are held on margin for a customer and that are qualified to be promised or lent. A member can lend securities unless written authorization is obtained from a customer authorizing the lending of such securities.
-
Question 5 of 10
5. Question
Who of the following enters its orders with another member in a single omnibus account?
Correct
Under the requirements for Security Futures is the delivery of Security Futures Risk Disclosure Statement. It is stated that a broker or dealer is the one who enters the orders with another member. In assuring that a broker or dealer is equipped with reasonable quantities they shall take sensible steps for the existing security futures risk disclosure statement.
Incorrect
Under the requirements for Security Futures is the delivery of Security Futures Risk Disclosure Statement. It is stated that a broker or dealer is the one who enters the orders with another member. In assuring that a broker or dealer is equipped with reasonable quantities they shall take sensible steps for the existing security futures risk disclosure statement.
-
Question 6 of 10
6. Question
Which of the following shall be disclosed if the pool’s trading manager intends to trade commodity interests for its own account?
I. It shall disclose whether participants will be permitted to inspect the records of such trades.
II. It shall disclose the written policies related to such trading.
III. It shall disclose the name of the CPO who intends to trade the commodity interests
IV. It shall disclose the price volatility of trading or its own accountCorrect
Trading for the own accounts of the pool’s trading manager or the CPO requires disclosures. If the pool’s trading manager intends to trade commodity interests for its own account, the document must disclose whether participants are permitted to inspect the records. It shall also disclose any written policies in line with the trading.
Incorrect
Trading for the own accounts of the pool’s trading manager or the CPO requires disclosures. If the pool’s trading manager intends to trade commodity interests for its own account, the document must disclose whether participants are permitted to inspect the records. It shall also disclose any written policies in line with the trading.
-
Question 7 of 10
7. Question
Which of the following shall be disclosed in a related party transaction?
I. Assessment risks of pool services provided by the CTA
II. Liquidity and leverage ratio of the pool assets
III. Discussion on the costs of the pool
IV. Full description of any material transactionsCorrect
In disclosing information regarding the related party transactions, the discussion of the costs to the pool and a full description of any material transactions or arrangements shall be included provided that there is no publicly disseminated price between the pool and any person affiliated with a person who provides pool services.
Incorrect
In disclosing information regarding the related party transactions, the discussion of the costs to the pool and a full description of any material transactions or arrangements shall be included provided that there is no publicly disseminated price between the pool and any person affiliated with a person who provides pool services.
-
Question 8 of 10
8. Question
Which of the following is correct regarding the redemption fees of initial investments?
I. A redemption fee does not require any disclosures as long as it is clear and concise.
II. A redemption fee must be clearly shown as a part of the total cost.
III. A redemption fee shall be reflected in the break-even analysis.
IV. A redemption fee shall be disclosed in the explanatory notes to the break-even analysis.Correct
A redemption fee must clearly be shown if it is charged on the redemption of the initial investment at the end of the first year of investment. It shall be considered a part of the total cost and reflected in the break-even analysis. Early withdrawal fees are also a redemption fee which must be disclosed in the explanatory notes to the break-even analysis.
Incorrect
A redemption fee must clearly be shown if it is charged on the redemption of the initial investment at the end of the first year of investment. It shall be considered a part of the total cost and reflected in the break-even analysis. Early withdrawal fees are also a redemption fee which must be disclosed in the explanatory notes to the break-even analysis.
-
Question 9 of 10
9. Question
Which of the following makes its full description be required in the document?
I. Any actual or potential conflict of interest on the part of the CPO
II. Any actual or potential conflict of interest on the part of the minor CTAs
III. Any actual or potential conflict of interest on the part of the pool’s trading manager
IV. Any actual or potential conflict of interest on the part of the associatesCorrect
The description of any actual or potential conflicts of interest regarding any aspect of the pool on the part of the CPO, the pool’s trading manager, any major CTA, the CPO of any major investee pool, any principal of the pool, and other person providing services to the pool or soliciting participants for the pool shall be included in the disclosure document.
Incorrect
The description of any actual or potential conflicts of interest regarding any aspect of the pool on the part of the CPO, the pool’s trading manager, any major CTA, the CPO of any major investee pool, any principal of the pool, and other person providing services to the pool or soliciting participants for the pool shall be included in the disclosure document.
-
Question 10 of 10
10. Question
Which of the following statements are correct regarding material conflicts involving the pool?
I. The document shall disclose where the root of conflicts of interest and its action plan to eliminate it.
II. The document shall include discussion of conflicts of interest arising from typical incentive fee arrangements.
III. The document shall disclose that the fee may take excessive risks to earn an outsized incentive fee.
IV. The document shall include a discussion of conflicts of interest arising from the trading of proprietary accounts.Correct
The discussion of the conflicts of interest arising from typical incentive fee arrangements shall be included in the document regarding any other material conflict involving the pool. It shall also include the conflicts of interest arising from the trading of proprietary accounts. The document shall also disclose that a certain fee may take excessive risks to earn an outsized incentive fee.
Incorrect
The discussion of the conflicts of interest arising from typical incentive fee arrangements shall be included in the document regarding any other material conflict involving the pool. It shall also include the conflicts of interest arising from the trading of proprietary accounts. The document shall also disclose that a certain fee may take excessive risks to earn an outsized incentive fee.