CUTE Sample Questions Part 1

Prices of listed close-ended trusts are determined in the following manner:

• A. The total value of the assets is divided by the number of units in circulation
• B. Prices are determined by the demand and supply in the market such as Bursa Malaysia where the trust is listed
• C. The Unit Trust Management Company computes the daily prices upon close of business day
• D. The Investment Committee sets the daily prices

In general, which of the following type of unit trust is likely to depreciate most when the overall stock market falls?

• A. Equity trust
• B. Fixed-income trust
• C. Money market trust
• D. Property trust

In Year 1995, Encik Jamal put RM50,000 in an investment that earned him 9.0% per annum. Suppose the investment is able to deliver the above yearly return for the past as well as the coming years, when will his money double?

• A. Year 2000
• B. Year 2003
• C. Year 2005
• D. Year 2007

Which Statement regarding the EPF Members Withdrawal Investment Scheme is correct?

• A. The maximum age for the qualified member is 60
• B. Members can withdraw funds from the EPF once in every two months
• C. Investment can be made with any unit trust scheme
• D. Balance in Account 2 is not eligible for this scheme

Which of the following statement is correct?

• A. The income of real estate investment trusts (REITs) is mainly derived from the rental income and capital appreciation of the property held by the trust
• B. The portfolio of a real estate investment trust (REIT) can be switched to equities easily as the assets are highly liquid
• C. Real estate investment trusts (REITs) are not allowed to be listed
• D. Unlisted unit trusts are not allowed to invest in real estate investment trusts (REITs)

A collective investment scheme is:

• A. A type of fund that allows anyone to collect money from others, much like people collect money for charity
• B. An investment fund which invests only in a specific collection of shares
• C. A collection of investments which cannot be sold without permission of the owners
• D. Another term used to describe a unit trust scheme

Generally, prospectus of a unit trust fund must be renewed _________.

• A. Every month
• B. Every six months
• C. Every year
• D. Every two years

Investors who invested in unit trusts with borrowed money:

• A. Will only make profit if returns from their investment are higher than the cost of their borrowing
• B. Will not affected by changes in the base lending rate set by their end-financiers
• C. Are guaranteed to make profit in longer term
• D. Need to keep on investing until the loan is fully settled

An investor wants to gain exposure to the commercial property market in Kuala Lumpur but with only a small amount of money (approximately RM5,000), she was not able to invest at all. Which is a good investment alternative for her?

• A. Invest in equity index fund
• B. Invest in fixed income fund
• C. Invest in any open-ended funds
• D. Invest in real estate property trusts

Puan Rose decided to withdraw some of her savings to invest in unit trusts. She would like to invest all of her money in a fund at one time and let it grow irrespective of the market condition. Whereas for Puan Sarina, she has very little savings but every month she is willing to cut some of her expenses and invests in unit trusts. Name the respective ways that can be used by them to invest in unit trusts.

• A. Spot and Installment Plans
• B. Lump Sum Investment and Regular Savings Plan
• C. Lump Sum Investment and Contractual Plans
• D. Fixed Investment and Installment Plans