QFA
QFA INVESTMENTS SAMPLE PAPER 1 EXAM
QUESTIONS AND ANSWERS
In relation to its dealings with customers in the US, a business based in
Ireland is directly subject to WHICH form of investment risk?
A Exchange rate.
B Liquidity.
C Interest rate.
D Inflation. - correct answer A
1.1 - Financial Services Market - Functions
Maturity transformation in relation to financial services is:
A a method of diversifying investment risk.
B turning short term deposits and savings into longer term loans.
C a form of regulatory intervention.
D a facility to allow the easy payment of bills. - correct answer B
,QFA
1.1 Functions
One of the main functions of the European
Central Bank (ECB) is:
A setting wholesale lending interest rates in the Eurozone area.
B fixing the exchange rate of the Euro against other currencies.
C setting rules for financial institution dealings with consumers.
D supervising the solvency of life assurance companies. - correct answer A
1.2 - Key participants
The activities of the Central Bank of Ireland are managed and controlled
by the:
A European Central Bank.
B European Commission.
C Central Bank Commission.
D Minister for Finance. - correct answer C
1.2 - Key participants
Overdrafts are charged interest:
A only when the overdraft limit has been exceeded.
,QFA
B when used.
C if not used.
D only when fully drawn. - correct answer B
1.3 - Main financial services provided
Which of the following Irish Stock Exchange markets is NOT a regulated
market for MiFID purposes?
(i)The Main Securities Market. (ii)The Enterprise Securities Market.
(iii)The Global Exchange Market.
A (i) only.
B (ii) only.
C (i) and (ii) only.
D (ii) and (iii) only. - correct answer D
1.5.1 Markets
Monetary policy in the EU countries who are members of the Eurozone
is under the control of the:
A European Commission.
B European Central Bank.
C National central banks of each individual country.
, QFA
D International Monetary Fund. - correct answer B
2.1.1 - Monetary policy
The control of interest rates is which type of economic policy?
A Fiscal.
B Capital.
C National.
D Monetary. - correct answer D
2.1.1 - Monetary policy
A continuing increase in the price of goods and services is called:
A deflation.
B inflation.
C reflation.
D regression. - correct answer B
2.2.1 - Inflation & deflation
Joan works in the tourist sector of the economy. She is laid off each
October until the following March.
QFA INVESTMENTS SAMPLE PAPER 1 EXAM
QUESTIONS AND ANSWERS
In relation to its dealings with customers in the US, a business based in
Ireland is directly subject to WHICH form of investment risk?
A Exchange rate.
B Liquidity.
C Interest rate.
D Inflation. - correct answer A
1.1 - Financial Services Market - Functions
Maturity transformation in relation to financial services is:
A a method of diversifying investment risk.
B turning short term deposits and savings into longer term loans.
C a form of regulatory intervention.
D a facility to allow the easy payment of bills. - correct answer B
,QFA
1.1 Functions
One of the main functions of the European
Central Bank (ECB) is:
A setting wholesale lending interest rates in the Eurozone area.
B fixing the exchange rate of the Euro against other currencies.
C setting rules for financial institution dealings with consumers.
D supervising the solvency of life assurance companies. - correct answer A
1.2 - Key participants
The activities of the Central Bank of Ireland are managed and controlled
by the:
A European Central Bank.
B European Commission.
C Central Bank Commission.
D Minister for Finance. - correct answer C
1.2 - Key participants
Overdrafts are charged interest:
A only when the overdraft limit has been exceeded.
,QFA
B when used.
C if not used.
D only when fully drawn. - correct answer B
1.3 - Main financial services provided
Which of the following Irish Stock Exchange markets is NOT a regulated
market for MiFID purposes?
(i)The Main Securities Market. (ii)The Enterprise Securities Market.
(iii)The Global Exchange Market.
A (i) only.
B (ii) only.
C (i) and (ii) only.
D (ii) and (iii) only. - correct answer D
1.5.1 Markets
Monetary policy in the EU countries who are members of the Eurozone
is under the control of the:
A European Commission.
B European Central Bank.
C National central banks of each individual country.
, QFA
D International Monetary Fund. - correct answer B
2.1.1 - Monetary policy
The control of interest rates is which type of economic policy?
A Fiscal.
B Capital.
C National.
D Monetary. - correct answer D
2.1.1 - Monetary policy
A continuing increase in the price of goods and services is called:
A deflation.
B inflation.
C reflation.
D regression. - correct answer B
2.2.1 - Inflation & deflation
Joan works in the tourist sector of the economy. She is laid off each
October until the following March.
