IMC (Investment Management Certificate) Exam
Question 1
Question: What is the primary role of an asset manager in the investment
management industry?
A. Safeguard client assets
B. Advise clients on investment strategy
C. Execute trades on behalf of clients
D. Allocate and manage assets within a portfolio
Correct: D
Explanation: The primary role of an asset manager is to allocate and manage
assets within a portfolio in accordance with the client's objectives and risk
profile. They are responsible for constructing portfolios and making
investment decisions, differentiating them from custodians, advisors, or
brokers, who have related but distinct roles.
Question 2
Question: Which of the following best describes the function of a custodian
in investment management?
A. Offering research for buy/sell decisions
, IMC (Investment Management Certificate) Exam
B. Managing asset allocation for clients
C. Holding and safeguarding client assets
D. Providing regulatory oversight
Correct: C
Explanation: Custodians are financial institutions that hold, safeguard, and
service assets on behalf of clients. They ensure the security of assets and
handle administrative tasks but do not make investment decisions.
Question 3
Question: Which key market participant is primarily responsible for executing
trades in financial markets?
A. Fund administrator
B. Asset manager
C. Custodian
D. Broker
Correct: D
Explanation: Brokers are financial intermediaries that execute buy and sell
, IMC (Investment Management Certificate) Exam
orders on behalf of clients in financial markets. They help connect buyers and
sellers and are essential for market liquidity.
Question 4
Question: What is the primary responsibility of a fund administrator?
A. Ensuring portfolio diversification
B. Processing subscriptions and redemptions
C. Making investment decisions
D. Managing client relationships
Correct: B
Explanation: Fund administrators primarily handle the administrative tasks
for investment funds, including processing subscriptions and redemptions,
valuing fund assets, and preparing financial statements.
Question 5
Question: Which regulatory body oversees financial services in the UK?
A. Securities and Exchange Commission (SEC)
, IMC (Investment Management Certificate) Exam
B. Financial Conduct Authority (FCA)
C. European Securities and Markets Authority (ESMA)
D. Prudential Regulation Authority (PRA)
Correct: B
Explanation: The Financial Conduct Authority (FCA) regulates conduct in the
UK financial services industry, aiming to protect consumers and ensure
market integrity.
Question 6
Question: What is NOT typically part of the investment management
process?
A. Strategic asset allocation
B. Portfolio rebalancing
C. Valuation of physical inventory
D. Performance measurement
Correct: C
Explanation: Valuating physical inventory is related to company operations,
Question 1
Question: What is the primary role of an asset manager in the investment
management industry?
A. Safeguard client assets
B. Advise clients on investment strategy
C. Execute trades on behalf of clients
D. Allocate and manage assets within a portfolio
Correct: D
Explanation: The primary role of an asset manager is to allocate and manage
assets within a portfolio in accordance with the client's objectives and risk
profile. They are responsible for constructing portfolios and making
investment decisions, differentiating them from custodians, advisors, or
brokers, who have related but distinct roles.
Question 2
Question: Which of the following best describes the function of a custodian
in investment management?
A. Offering research for buy/sell decisions
, IMC (Investment Management Certificate) Exam
B. Managing asset allocation for clients
C. Holding and safeguarding client assets
D. Providing regulatory oversight
Correct: C
Explanation: Custodians are financial institutions that hold, safeguard, and
service assets on behalf of clients. They ensure the security of assets and
handle administrative tasks but do not make investment decisions.
Question 3
Question: Which key market participant is primarily responsible for executing
trades in financial markets?
A. Fund administrator
B. Asset manager
C. Custodian
D. Broker
Correct: D
Explanation: Brokers are financial intermediaries that execute buy and sell
, IMC (Investment Management Certificate) Exam
orders on behalf of clients in financial markets. They help connect buyers and
sellers and are essential for market liquidity.
Question 4
Question: What is the primary responsibility of a fund administrator?
A. Ensuring portfolio diversification
B. Processing subscriptions and redemptions
C. Making investment decisions
D. Managing client relationships
Correct: B
Explanation: Fund administrators primarily handle the administrative tasks
for investment funds, including processing subscriptions and redemptions,
valuing fund assets, and preparing financial statements.
Question 5
Question: Which regulatory body oversees financial services in the UK?
A. Securities and Exchange Commission (SEC)
, IMC (Investment Management Certificate) Exam
B. Financial Conduct Authority (FCA)
C. European Securities and Markets Authority (ESMA)
D. Prudential Regulation Authority (PRA)
Correct: B
Explanation: The Financial Conduct Authority (FCA) regulates conduct in the
UK financial services industry, aiming to protect consumers and ensure
market integrity.
Question 6
Question: What is NOT typically part of the investment management
process?
A. Strategic asset allocation
B. Portfolio rebalancing
C. Valuation of physical inventory
D. Performance measurement
Correct: C
Explanation: Valuating physical inventory is related to company operations,
