QFA Investments Sample Paper 1
A 'Reason Why Statement' issued to a client turned into deemed to be in breach of the
Consumer Protection Code. This became because it was:
A posted to the customer.
B now not signed with the aid of the adviser.
C no longer completed at the primary meeting with the client.
D organized 5 days after the advice. - ANS-B
15.8.2.2 Consumer Protection Code suitability requirement
A financial institution is advertising a deposit account presenting an hobby price of zero.Five%.
Under the Consumer Protection Code the advertisement MUST consist of:
(i) the AER.
(ii) whether or not the price is constant or variable.
(iii) how an awful lot of the deposit, if any, is assured via the Irish Deposit Guarantee Scheme.
A (ii) simplest.
B (iii) handiest.
C (i) and (ii) handiest.
D (i), (ii) and (iii). - ANS-C
4.10.4 - Advertising deposit charges
A organization has one million issued everyday shares, of nominal price of €1 in keeping with
share, which have been issued at €1.75 in keeping with percentage. If the employer's modern
percentage price is €three.Seventy five consistent with proportion, what is the organization's
present day marketplace capitalisation?
A €a million
B €1,250,000
C €1,750,000
D €3,750,000 - ANS-D
five.12.Eight - Market capitalisation
A agency has issued to shareholders one new loose proportion for each five stocks already held
with the aid of that shareholder. This exercise is known as:
A a scrip problem.
B a bonus problem.
C a rights difficulty.
D dissolution. - ANS-B
,5.3.Five.2 Bonus problem
A organization issued to shareholders 1,000,000 shares with a nominal cost of €1 every at a
charge of €1.50 every. How is the €1,500,000 capital raised shown in the company's stability
sheet?
A €1,500,000 is proven as issued share capital.
B €500,000 is proven as issued share capital
and €a million is shown as a reserve.
C €1,000,000 is shown as issued proportion capital and €500,000 is proven as a reserve.
D €1,500,000 is proven as a reserve. - ANS-C
five.Three.Four - Issued share capital
A continuing boom within the fee of products and services is referred to as:
A deflation.
B inflation.
C reflation.
D regression. - ANS-B
2.2.1 - Inflation & deflation
A deposit agent meets a consumer for the first time. What is the FIRST document the deposit
agent must deliver to the patron earlier than supplying any financial service for her or him?
A A copy of the agent's expert indemnity coverage policy.
B A reproduction of the applicable credit institution's phrases of business.
C A summary of the numerous deposit accounts provided via the applicable credit institution.
D A Reason Why Statement. - ANS-B
4.Nine.1 Deposit Agents
A existence warranty organisation which is a personal business enterprise is which of the
following styles of agencies?
A A unique hobby agency (DAC).
B A private company limited by way of shares (LTD).
C A public restrained agency.
D A company restricted through assure. - ANS-A
5.2- Types of Companies
A existence warranty tracker bond can be improper for Paul and Angie, a married couple in their
late 60s, due to the fact:
A the bonus payable at maturity might be prone to USC.
B they'll should include any gain they make at the investment in their tax returns.
, C they may now not be capable of reclaim any go out tax deducted from a bonus payable at
maturity.
D the bonus payable at adulthood will be vulnerable to DIRT. - ANS-C
9.Three.4 - Taxation of returns
A life organization tracker bond wherein the existence organization itself is supplying the
guarantee:
A can describe or market it the product as "assured".
B can follow handiest if the bond has a most time period of 2 years.
C cannot describe or put it on the market the product as "guaranteed".
D can apply only if the bond has a most term of four years. - ANS-C
thirteen.1.5 Use of the time period 'Guaranteed'
A MiFID organization has obtained an education from a retired patron to shop for a number of
CFDs related to shares in a enterprise indexed at the Stock Exchange. Under MiFID guidelines,
the firm is needed to:
A first ask the client approximately their understanding and experience of making an investment
in CFDs, earlier than executing the order.
B arrange a assembly with the purchaser to talk about the funding, previous to executing the
order.
C decline to perform the transaction if the adviser feels it is not suitable to the consumer.
D decline to perform the transaction, no matter whether the funding is or is not appropriate to
the consumer. - ANS-A
15.Nine.2 - MIFID Execution simplest
A UCITS fund ought to make investments mostly in:
A bonds.
B equities.
C transferable securities.
D authorities bonds and deposits. - ANS-C
7.Three Advantages of investing in a Collective Investment fund
A UCITS Key Investor Information document suggests which of the following charges?
(i) Entry.
(ii) Ongoing.
(iii) Performance Fee.
A (ii) simplest.
B (iii) handiest.
C (i) and (ii) simplest.
A 'Reason Why Statement' issued to a client turned into deemed to be in breach of the
Consumer Protection Code. This became because it was:
A posted to the customer.
B now not signed with the aid of the adviser.
C no longer completed at the primary meeting with the client.
D organized 5 days after the advice. - ANS-B
15.8.2.2 Consumer Protection Code suitability requirement
A financial institution is advertising a deposit account presenting an hobby price of zero.Five%.
Under the Consumer Protection Code the advertisement MUST consist of:
(i) the AER.
(ii) whether or not the price is constant or variable.
(iii) how an awful lot of the deposit, if any, is assured via the Irish Deposit Guarantee Scheme.
A (ii) simplest.
B (iii) handiest.
C (i) and (ii) handiest.
D (i), (ii) and (iii). - ANS-C
4.10.4 - Advertising deposit charges
A organization has one million issued everyday shares, of nominal price of €1 in keeping with
share, which have been issued at €1.75 in keeping with percentage. If the employer's modern
percentage price is €three.Seventy five consistent with proportion, what is the organization's
present day marketplace capitalisation?
A €a million
B €1,250,000
C €1,750,000
D €3,750,000 - ANS-D
five.12.Eight - Market capitalisation
A agency has issued to shareholders one new loose proportion for each five stocks already held
with the aid of that shareholder. This exercise is known as:
A a scrip problem.
B a bonus problem.
C a rights difficulty.
D dissolution. - ANS-B
,5.3.Five.2 Bonus problem
A organization issued to shareholders 1,000,000 shares with a nominal cost of €1 every at a
charge of €1.50 every. How is the €1,500,000 capital raised shown in the company's stability
sheet?
A €1,500,000 is proven as issued share capital.
B €500,000 is proven as issued share capital
and €a million is shown as a reserve.
C €1,000,000 is shown as issued proportion capital and €500,000 is proven as a reserve.
D €1,500,000 is proven as a reserve. - ANS-C
five.Three.Four - Issued share capital
A continuing boom within the fee of products and services is referred to as:
A deflation.
B inflation.
C reflation.
D regression. - ANS-B
2.2.1 - Inflation & deflation
A deposit agent meets a consumer for the first time. What is the FIRST document the deposit
agent must deliver to the patron earlier than supplying any financial service for her or him?
A A copy of the agent's expert indemnity coverage policy.
B A reproduction of the applicable credit institution's phrases of business.
C A summary of the numerous deposit accounts provided via the applicable credit institution.
D A Reason Why Statement. - ANS-B
4.Nine.1 Deposit Agents
A existence warranty organisation which is a personal business enterprise is which of the
following styles of agencies?
A A unique hobby agency (DAC).
B A private company limited by way of shares (LTD).
C A public restrained agency.
D A company restricted through assure. - ANS-A
5.2- Types of Companies
A existence warranty tracker bond can be improper for Paul and Angie, a married couple in their
late 60s, due to the fact:
A the bonus payable at maturity might be prone to USC.
B they'll should include any gain they make at the investment in their tax returns.
, C they may now not be capable of reclaim any go out tax deducted from a bonus payable at
maturity.
D the bonus payable at adulthood will be vulnerable to DIRT. - ANS-C
9.Three.4 - Taxation of returns
A life organization tracker bond wherein the existence organization itself is supplying the
guarantee:
A can describe or market it the product as "assured".
B can follow handiest if the bond has a most time period of 2 years.
C cannot describe or put it on the market the product as "guaranteed".
D can apply only if the bond has a most term of four years. - ANS-C
thirteen.1.5 Use of the time period 'Guaranteed'
A MiFID organization has obtained an education from a retired patron to shop for a number of
CFDs related to shares in a enterprise indexed at the Stock Exchange. Under MiFID guidelines,
the firm is needed to:
A first ask the client approximately their understanding and experience of making an investment
in CFDs, earlier than executing the order.
B arrange a assembly with the purchaser to talk about the funding, previous to executing the
order.
C decline to perform the transaction if the adviser feels it is not suitable to the consumer.
D decline to perform the transaction, no matter whether the funding is or is not appropriate to
the consumer. - ANS-A
15.Nine.2 - MIFID Execution simplest
A UCITS fund ought to make investments mostly in:
A bonds.
B equities.
C transferable securities.
D authorities bonds and deposits. - ANS-C
7.Three Advantages of investing in a Collective Investment fund
A UCITS Key Investor Information document suggests which of the following charges?
(i) Entry.
(ii) Ongoing.
(iii) Performance Fee.
A (ii) simplest.
B (iii) handiest.
C (i) and (ii) simplest.
