FCA SAMPLE EXAM QUESTIONS AND ANSWERS
When a shareholder delegates the right to vote at an AGM to another person, which of
the following statements is TRUE? - Answers- They appoint a proxy
Which of the following normally have voting rights attributed to them at the time of
issue? - Answers- 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: - Answers- active
management with passive management
The published spread of a unit trust price is the difference between which of the
following? - Answers- the selling and buying prices of the units
What is the MAXIMUM compensation award that the Financial Ombudsman can make a
firm pay? - Answers- 150,000
Which of the following is a measure of inflation in the UK - Answers- Retail Price Index
What does the seller of an option normally acquire? - Answers- An immediate premium
Spot FX is traded on Tuesday. When will the currency arrive in the recipients` bank -
Answers- Thursday
The obligation to buy an underlying stock at an agreed price at a specified future date is
known as a: - Answers- future
Which of the following financial activities is MOST likely to be carried out in the retail
sector? - Answers- 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? -
Answers- Business insurance
Which of the following is a characteristic of direct investment in property compared to
other investments? - Answers- It offers low volatility
Who should private investors contact if they wish to buy shares in an investment trust? -
Answers- A stockbroker
What does the S&P 500 provide? - Answers- A broad view of the US stock market
When a shareholder delegates the right to vote at an AGM to another person, which of
the following statements is TRUE? - Answers- They appoint a proxy
Which of the following normally have voting rights attributed to them at the time of
issue? - Answers- 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: - Answers- active
management with passive management
The published spread of a unit trust price is the difference between which of the
following? - Answers- the selling and buying prices of the units
What is the MAXIMUM compensation award that the Financial Ombudsman can make a
firm pay? - Answers- 150,000
Which of the following is a measure of inflation in the UK - Answers- Retail Price Index
What does the seller of an option normally acquire? - Answers- An immediate premium
Spot FX is traded on Tuesday. When will the currency arrive in the recipients` bank -
Answers- Thursday
The obligation to buy an underlying stock at an agreed price at a specified future date is
known as a: - Answers- future
Which of the following financial activities is MOST likely to be carried out in the retail
sector? - Answers- 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? -
Answers- Business insurance
Which of the following is a characteristic of direct investment in property compared to
other investments? - Answers- It offers low volatility
Who should private investors contact if they wish to buy shares in an investment trust? -
Answers- A stockbroker
What does the S&P 500 provide? - Answers- A broad view of the US stock market
