QFA Investments Sample Paper 1 verified answer
questions
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
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.
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.
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.
When Joan becomes unemployed in October, this is an example of
WHICH type of unemployment?
A Discretionary.
B Frictional.
C Seasonal.
D Structural. Correct Answer-C
2.3 Unemployment
questions
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
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.
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.
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.
When Joan becomes unemployed in October, this is an example of
WHICH type of unemployment?
A Discretionary.
B Frictional.
C Seasonal.
D Structural. Correct Answer-C
2.3 Unemployment
