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WorksheetsCFA1 2024 EQ M1 a-d
Total questions: 10
Worksheet time: 5mins
Which is NOT in 3 main functions of the financial system?
the achievement of the purposes for which people use the financial system
the discovery of the rates of return that equate aggregate savings with aggre- gate borrowings
the allocation of capital to the best uses
create jobs and balance cashflows
Which is security?
Pooled investment
Real Asset
Derivatives
Covered Warrant
Which is NOT Equity?
Common Stock
Preferred Stock
Stock Exchange
Warrants
Which below statement is true?
Commodities trade in spot, forward, and futures markets
There are 3 types of contracts: Forward, Futures, Option
Unlike other asset, we only directly invest in real assets (real estate, machinery, equipment...)
Fixed-income securities typically refer to equity that are promises to repay borrowed money in the future.
How many Financial intermediaries are there?
4
5
6
7
Which Financial intermediary has earning source of commission fee?
Broker
Dealer
Arbitrageur
Regulator
Consider a mutual fund that invests primarily in fixed-income securities that have been determined to be appropriate given the fund’s investment goal. Which of the following is least likely to be a part of this fund?
Commercial paper
Warrants
Repurchase agreements
A friend has asked you to explain the differences between open-end and closed-end funds. Which of the following will you most likely include in your explanation?
Closed-end funds are unavailable to new investors
When investors sell the shares of an open-end fund, they can receive a dis-
count or a premium to the fund’s net asset value
When selling shares, investors in an open-end fund sell the shares back to the fund whereas investors in a closed-end fund sell the shares to others in the secondary market.
The Standard & Poor’s Depositary Receipts (SPDRs) is an investment that tracks the S&P 500 stock market index. Purchases and sales of SPDRs during an average trading day are best described as:
primary market transactions in a pooled investment
secondary market transactions in a pooled investment
secondary market transactions in an actively managed investment
The usefulness of a forward contract is limited by some problems. Which of the following is most likely one of those problems?
Once you have entered into a forward contract, it is difficult to exit from the contract.
Entering into a forward contract requires the long party to deposit an initial amount with the short party.
If the price of the underlying asset moves adversely from the perspective of the long party, periodic payments must be made to the short party.
