FCA Sample Exam
When a shareholder delegates the right to vote at an AGM to another person,
which of the following statements is TRUE? - CORRECT ANSWER-They appoint
a proxy
Which of the following normally have voting rights attributed to them at the time
of issue? - CORRECT ANSWER-Ordinary shares
A fund manager has decided to adopt a `core-satellite` approach to its
investment strategy. The key characteristic of this strategy is that it combines: -
CORRECT ANSWER-active management with passive management
The published spread of a unit trust price is the difference between which of the
following? - CORRECT ANSWER-the selling and buying prices of the units
What is the MAXIMUM compensation award that the Financial Ombudsman can
make a firm pay? - CORRECT ANSWER-150,000
Which of the following is a measure of inflation in the UK - CORRECT
ANSWER-Retail Price Index
What does the seller of an option normally acquire? - CORRECT ANSWER-An
immediate premium
The profits made from full encashment of which ONE of the following products
will be treated for tax purposes as income rather than capital gains? - CORRECT
ANSWER-Investment bonds
A capitalisation issue would have which of the following effects on an investor`s
shareholding? - CORRECT ANSWER-The number of shares will change
Capital Gains Tax is payable on which of the following assets? - CORRECT
ANSWER-The sale of equities
Spot FX is traded on Tuesday. When will the currency arrive in the recipients`
bank - CORRECT ANSWER-Thursday
, The obligation to buy an underlying stock at an agreed price at a specified future
date is known as a: - CORRECT ANSWER-future
Which of the following financial activities is MOST likely to be carried out in the
retail sector? - CORRECT ANSWER-Financial planning
What protection product would be MOST suitable for a company that employs a
consulting engineer because of his detailed knowledge of a particular project? -
CORRECT ANSWER-Business insurance
Which of the following is a characteristic of direct investment in property
compared to other investments? - CORRECT ANSWER-It offers low volatility
Who should private investors contact if they wish to buy shares in an investment
trust? - CORRECT ANSWER-A stockbroker
What does the S&P 500 provide? - CORRECT ANSWER-A broad view of the US
stock market
In which of the following circumstances would individuals be committing the
offence of insider dealing? - CORRECT ANSWER-Dealing using information that
was not available to the market, to make a profit
A client holds an 8% bond which matures in 2016. It is currently trading at £124.
What is the flat yield? - CORRECT ANSWER-6.45%
Investing in bonds provides which of the following? - CORRECT
ANSWER-Regular income
If money laundering is suspected, to whom must employees report their
suspicion? - CORRECT ANSWER-Money Laundering Reporting Officer
What is a unit trust? - CORRECT ANSWER-A pool of investments managed
collectively on behalf of its investors by a fund manager
When a shareholder delegates the right to vote at an AGM to another person,
which of the following statements is TRUE? - CORRECT ANSWER-They appoint
a proxy
Which of the following normally have voting rights attributed to them at the time
of issue? - CORRECT ANSWER-Ordinary shares
A fund manager has decided to adopt a `core-satellite` approach to its
investment strategy. The key characteristic of this strategy is that it combines: -
CORRECT ANSWER-active management with passive management
The published spread of a unit trust price is the difference between which of the
following? - CORRECT ANSWER-the selling and buying prices of the units
What is the MAXIMUM compensation award that the Financial Ombudsman can
make a firm pay? - CORRECT ANSWER-150,000
Which of the following is a measure of inflation in the UK - CORRECT
ANSWER-Retail Price Index
What does the seller of an option normally acquire? - CORRECT ANSWER-An
immediate premium
The profits made from full encashment of which ONE of the following products
will be treated for tax purposes as income rather than capital gains? - CORRECT
ANSWER-Investment bonds
A capitalisation issue would have which of the following effects on an investor`s
shareholding? - CORRECT ANSWER-The number of shares will change
Capital Gains Tax is payable on which of the following assets? - CORRECT
ANSWER-The sale of equities
Spot FX is traded on Tuesday. When will the currency arrive in the recipients`
bank - CORRECT ANSWER-Thursday
, The obligation to buy an underlying stock at an agreed price at a specified future
date is known as a: - CORRECT ANSWER-future
Which of the following financial activities is MOST likely to be carried out in the
retail sector? - CORRECT ANSWER-Financial planning
What protection product would be MOST suitable for a company that employs a
consulting engineer because of his detailed knowledge of a particular project? -
CORRECT ANSWER-Business insurance
Which of the following is a characteristic of direct investment in property
compared to other investments? - CORRECT ANSWER-It offers low volatility
Who should private investors contact if they wish to buy shares in an investment
trust? - CORRECT ANSWER-A stockbroker
What does the S&P 500 provide? - CORRECT ANSWER-A broad view of the US
stock market
In which of the following circumstances would individuals be committing the
offence of insider dealing? - CORRECT ANSWER-Dealing using information that
was not available to the market, to make a profit
A client holds an 8% bond which matures in 2016. It is currently trading at £124.
What is the flat yield? - CORRECT ANSWER-6.45%
Investing in bonds provides which of the following? - CORRECT
ANSWER-Regular income
If money laundering is suspected, to whom must employees report their
suspicion? - CORRECT ANSWER-Money Laundering Reporting Officer
What is a unit trust? - CORRECT ANSWER-A pool of investments managed
collectively on behalf of its investors by a fund manager
