ICWIM

A rise in living standards will tend to:A . Reduce the demand for commoditiesB . Have no effect on commoditiesC . Increase government participation in the commodities marketsD . Create an increased demand for commoditiesView AnswerAnswer: D Explanation: Understanding the Question Context: The question examines the relationship between rising living...

Why might an expansionary fiscal policy lead to future inflationary pressures?A . It causes higher interest ratesB . Workers demanding higher wagesC . Due to a significant fall in private sector investmentD . Due to the effect of time lagView AnswerAnswer: B Explanation: Expansionary Fiscal Policy and Inflation: Expansionary fiscal...

When investors wish to sell units in mutual funds, there is a risk of the fund being gated. Why might this happen?A . To ensure any tax deferral benefits are not lostB . To ensure that the commission as a proportion of the fund remains smallC . Because the investor...

If an investor expects to receive a bullet payment, they are likely to be invested in a:A . Treasury bondB . Zero coupon bondC . Convertible bondD . Premium bondView AnswerAnswer: B Explanation: Understanding Bullet Payments: A bullet payment is a single payment of principal and interest at maturity. Zero...

The coupon on a bond has been expressed in real terms, rather than as a nominal amount. This is because:A . It is an inflation-linked bondB . Its redemption date is longer than 10 yearsC . It is an unsecured instrumentD . It is a bearer bondView AnswerAnswer: A Explanation:...

The UCITS regulations have been integral to introducing a common format for:A . Company accountsB . Corporate actionsC . Key investor information documentsD . Trade settlementView AnswerAnswer: C Explanation: The UCITS (Undertakings for the Collective Investment in Transferable Securities) regulations mandate that fund managers provide a standardized Key Investor Information...

An investor deposits £1,000 into an account that pays interest at the rate of 3% per year. If the interest is credited to the account at the end of the year and the investor leaves the money in the account for 5 years, how much money will be in the...

What fiduciary responsibility does a financial adviser have for their clients?A . Decrease the overall risk of their portfolioB . Provide their services at a competitive feeC . Act in the best interests of their clientsD . Offer conservative advice with low riskView AnswerAnswer: C Explanation: Fiduciary Duty: A fiduciary...

The management of investment portfolios of collective investment schemes, pension funds, insurance funds, hedge funds, and private equity would normally be considered to fall into the scope of: A. The retail financial sector B. The wholesale financial sector C. Family offices D. Private bankingView AnswerAnswer: B Explanation: Wholesale Financial Sector...

How would an active fund manager seek to avoid underperforming their peer group when deciding on asset allocation? A. Through the use of asset allocation by consensus B. By assessing the prospects for each main asset class C. By hedging currency and market risk D. Through the use of quantitative...