CISI, intro Exam 2026 Questions and
Answers
A type of investment approach employed to generate returns in excess of the
market - Correct answer-Active Management
Tax on top band of income , currently 45 % - Correct answer-Additional Rate ( of
Income Tax )
Established by the London Stock Exchange ( LSE ) . It is the junior market for
smaller company shares . - Correct answer-Alternative Investment Market ( AIM )
Yearly meeting of shareholders Mainly used to vote on dividends , appoint
directors and approve financial statements . - Correct answer-Annual General
Meeting ( AGM
The legal document which sets out the internal constitution of a company .
Included within the Articles will be details of shareholder voting rights and
company borrowing powers - Correct answer-Articles of Association
Required status under FSMA for firms that wish to provide financial services . -
Correct answer-Authorisation
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,Fund manager for an OEIC . - Correct answer-Authorised Corporate Director ACD
)
Unit trust which is freely marketable Authorised by the FCA . - Correct answer-
Authorised Unit Trust ( AUT )
A summary of all the transactions between a country and the rest of the world . The
difference between a country's imports and exports . - Correct answer-Balance of
Payments
The UK's central bank . Implements policy decided by the Treasury and interest
rates . determines economic - Correct answer-Bank of England ( BOE )
Rate of tax ( currently 20 % ) charged o on that is below the higher - rate tax
threshold . income - Correct answer-Basic Rate ( of Income Tax )
The beneficial who inherit under a will owners of trust property , or those - Correct
answer-Beneficiaries
Price at which dealers buy price quoted by unit trusts that are stock . It is also the
dual - priced for sales of units . - Correct answer-Bid Price
Interest bearing securities which entitle holders to annual interest and repayment at
maturity. Commonly issued by both companies and governments - Correct answer-
Bond
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, A free issue of shares to existing shareholders. No money is paid. The share price
falls pro rata. Also known as a capitalisation or scrip issue. - Correct answer-Bonus
issue
Index of the prices of 40 major French company shares - Correct answer-CAC 40
Option giving its buyer the right to buy and asset at an agreed price - Correct
answer-call option
Tax payable by individuals on profit made on the disposal of certain assets. -
Correct answer-capital gains tax
Central banks typically have responsibility for setting a nations or a regions short
term interest rate, controlling the money supply, acting as banker and lender of last
resort to the banking system and managing national debt - Correct answer-central
bank
Ownership (of shares) designated by certificate. - Correct answer-certificated
Certificates issued by a bank as evidence that interest-bearing funds have been
deposited with it. CDs are traded within the money market. - Correct answer-
Certificates of Deposit (CDs)
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Answers
A type of investment approach employed to generate returns in excess of the
market - Correct answer-Active Management
Tax on top band of income , currently 45 % - Correct answer-Additional Rate ( of
Income Tax )
Established by the London Stock Exchange ( LSE ) . It is the junior market for
smaller company shares . - Correct answer-Alternative Investment Market ( AIM )
Yearly meeting of shareholders Mainly used to vote on dividends , appoint
directors and approve financial statements . - Correct answer-Annual General
Meeting ( AGM
The legal document which sets out the internal constitution of a company .
Included within the Articles will be details of shareholder voting rights and
company borrowing powers - Correct answer-Articles of Association
Required status under FSMA for firms that wish to provide financial services . -
Correct answer-Authorisation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Fund manager for an OEIC . - Correct answer-Authorised Corporate Director ACD
)
Unit trust which is freely marketable Authorised by the FCA . - Correct answer-
Authorised Unit Trust ( AUT )
A summary of all the transactions between a country and the rest of the world . The
difference between a country's imports and exports . - Correct answer-Balance of
Payments
The UK's central bank . Implements policy decided by the Treasury and interest
rates . determines economic - Correct answer-Bank of England ( BOE )
Rate of tax ( currently 20 % ) charged o on that is below the higher - rate tax
threshold . income - Correct answer-Basic Rate ( of Income Tax )
The beneficial who inherit under a will owners of trust property , or those - Correct
answer-Beneficiaries
Price at which dealers buy price quoted by unit trusts that are stock . It is also the
dual - priced for sales of units . - Correct answer-Bid Price
Interest bearing securities which entitle holders to annual interest and repayment at
maturity. Commonly issued by both companies and governments - Correct answer-
Bond
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, A free issue of shares to existing shareholders. No money is paid. The share price
falls pro rata. Also known as a capitalisation or scrip issue. - Correct answer-Bonus
issue
Index of the prices of 40 major French company shares - Correct answer-CAC 40
Option giving its buyer the right to buy and asset at an agreed price - Correct
answer-call option
Tax payable by individuals on profit made on the disposal of certain assets. -
Correct answer-capital gains tax
Central banks typically have responsibility for setting a nations or a regions short
term interest rate, controlling the money supply, acting as banker and lender of last
resort to the banking system and managing national debt - Correct answer-central
bank
Ownership (of shares) designated by certificate. - Correct answer-certificated
Certificates issued by a bank as evidence that interest-bearing funds have been
deposited with it. CDs are traded within the money market. - Correct answer-
Certificates of Deposit (CDs)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
