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Emma Finch
Customer Success Manager | CMFASexam
Real estate investments usually involve more complexities than the other investment categories because of which of the following reasons?
I. The uniqueness of each property
II. The differing rights associated with ownership of each property
III. The absence of organised markets for the ready sale and purchase of the property or ownership interest
IV. The capital depreciation in the property’s value
Real estate investments usually involve more complexities than the other investment categories because of:
 the uniqueness of each property;
 the differing rights associated with ownership of each property; and
 the absence of organised markets for the ready sale and purchase of the property or ownership interest.
Real estate investments usually involve more complexities than the other investment categories because of:
 the uniqueness of each property;
 the differing rights associated with ownership of each property; and
 the absence of organised markets for the ready sale and purchase of the property or ownership interest.
The bond market which if also known as which of the following is a financial market where participants buy and sell debt securities, usually in the form of bonds?
I. The debt
II. The credit
III. The fixed income market
IV. The primary market
The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds.
The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities, usually in the form of bonds.
There are risks associated with Extended Settlements, which of the following is(are) not associated with ES?
I. The leveraged nature of ES contracts
II. Margin calls
III. Liquidity
IV. Volatility
The risks associated with ES include (i) the leveraged nature of ES contracts; (ii) margin calls; (iii) liquidity; (iv) volatility; and (v) buy-in by clearing house.
The risks associated with ES include (i) the leveraged nature of ES contracts; (ii) margin calls; (iii) liquidity; (iv) volatility; and (v) buy-in by clearing house.
The following statements describes what options are except?
I. A formal contract between a seller and a buyer to buy or sell some stock in the future at some pre-set price (strike price).
II. Equity call option gives the right (not obligation) to buy at strike price; put option gives the right (not obligation) to sell at strike
III. In terms of risks, they have limited exposure for the option buyer – the maximum capital loss for the option buyer is the purchase price of the option (option premium)
IV. They do their settlement physical delivery (common with commodities and bonds) or cash settlement
Options
A formal contract between a seller and a buyer to buy or sell some stock in the future at some pre-set price (strike price).
Equity call option gives the right (not obligation) to buy at strike price; put option gives the right (not obligation) to sell at strike
Limited exposure for the option buyer – the maximum capital loss for the option buyer is the
purchase price of the option (option premium)
Options
A formal contract between a seller and a buyer to buy or sell some stock in the future at some pre-set price (strike price).
Equity call option gives the right (not obligation) to buy at strike price; put option gives the right (not obligation) to sell at strike
Limited exposure for the option buyer – the maximum capital loss for the option buyer is the
purchase price of the option (option premium)
Which of the following is(are) considered to be the benefits of financial derivatives?
I. Financial derivatives can help reduce risks by insuring against potential risks.
II. They have the chance to let investors earn more profits.
III. They give the investor the freedom to buy assets at a low cost or sell them at a higher price.
IV. They can protect their investments by taking positions in the futures market to protect the gains that they have made in the cash market.
Financial derivatives can help reduce risks by insuring against potential risks.
Another advantage of financial derivatives is the chance to let investors earn more profits.
The concept of financial derivatives also gives the investor the freedom to buy assets at a low cost or sell them at a higher price.
derivatives can and should be used to hedge against certain risks, but the leverage inherent in derivatives contracts makes them potentially dangerous instruments.
Financial derivatives can help reduce risks by insuring against potential risks.
Another advantage of financial derivatives is the chance to let investors earn more profits.
The concept of financial derivatives also gives the investor the freedom to buy assets at a low cost or sell them at a higher price.
derivatives can and should be used to hedge against certain risks, but the leverage inherent in derivatives contracts makes them potentially dangerous instruments.
Financial derivatives are financial assets in which the values are derived from, or depend on, some other assets such as?
I. Equity
II. Foreign exchange
III. Commodities
IV. Bonds
Financial derivatives are financial assets in which the values are derived from, or depend on, some other assets (such as equity, foreign exchange, commodities, bonds and others).
Financial derivatives are financial assets in which the values are derived from, or depend on, some other assets (such as equity, foreign exchange, commodities, bonds and others).
Financial derivatives have attained overwhelming popularity and rapid growth in recent years for a number of reasons including which of the following?
I. It helps to make the financial market more complete
II. It allows speculators and risk managers to use these assets to pursue their goals
III. It attracts traders to these markets because of their trading efficiency
IV. It features a much lower transaction costs and liquid markets
Financial derivatives have attained overwhelming popularity and rapid growth in recent years for a number of reasons, including (a) helping to make the financial market more complete; (b) allowing speculators and risk managers to use these assets to pursue their goals; and (c) attracting traders to these markets because of their trading efficiency, and the low transaction costs and liquid markets.
Financial derivatives have attained overwhelming popularity and rapid growth in recent years for a number of reasons, including (a) helping to make the financial market more complete; (b) allowing speculators and risk managers to use these assets to pursue their goals; and (c) attracting traders to these markets because of their trading efficiency, and the low transaction costs and liquid markets.
ES contracts are flexible instruments that offer the investor numerous advantages such as?
I. Capital efficiency
II. Ease of taking short positions
III. A hedging tool
IV. Longer view of the market
ES contracts are flexible instruments that offer the investor numerous advantages, such as capital efficiency, ease of taking short positions and longer view of the market. In addition, it can be used as a hedging tool, taking advantage of stock spreads, as well as arbitraging.
ES contracts are flexible instruments that offer the investor numerous advantages, such as capital efficiency, ease of taking short positions and longer view of the market. In addition, it can be used as a hedging tool, taking advantage of stock spreads, as well as arbitraging.
Which of the following occur(s) to shareholders when a company makes a profit?
I. The company may issue bonus issues free of charge to existing shareholders.
II. The company may issue bonus issues at a very low rate to existing shareholders.
III. The company may choose to diversify its bonds for existing shareholders.
IV. The company may provide capital gain bonuses at a higher rate for its existing shareholders.
When a company makes a profit, it may issue bonus issues free of charge to existing shareholders.
When a company makes a profit, it may issue bonus issues free of charge to existing shareholders.
Besides the traditional investment assets, investors have the option of investing in alternative classes of assets. Which is(are)?
I. Financial derivatives
II. Real estate investment
III. Cryptocurrency
IV. Structured products
Besides the traditional investment assets, investors have the option of investing in alternative classes of assets. They are financial derivatives, real estate investment and structured products.
Besides the traditional investment assets, investors have the option of investing in alternative classes of assets. They are financial derivatives, real estate investment and structured products.
The financial derivatives include which of the following?
I. Options
II. Contracts for difference
III. Warrants
IV. Future
These financial derivatives include the following:
 Options;
 Contracts for difference (CFD) and Extended Settlement (ES);
 Warrants;
 Futures;
 Swaps; and
 Forwards
These financial derivatives include the following:
 Options;
 Contracts for difference (CFD) and Extended Settlement (ES);
 Warrants;
 Futures;
 Swaps; and
 Forwards
Bond ratings are based on both qualitative and quantitative factors, including which of the following?
I. Issuer’s financial ratios
II. Issuer’s profitability ratios
III. Subordinated and guarantee provisions
IV. Outlook on the issuers
Bond ratings are based on both qualitative and quantitative factors, which include the following: issuer’s financial and profitability ratios, subordinated and guarantee provisions (if any), outlook on the issuers, etc
Bond ratings are based on both qualitative and quantitative factors, which include the following: issuer’s financial and profitability ratios, subordinated and guarantee provisions (if any), outlook on the issuers, etc
Bond issues of governments and businesses typically are rated by rating agencies such as?
I. Standard and Poor’s Corporation
II. Moody’s Investors Service and Fitch Ratings
III. Leeman Brother’s Service Ratings
IV. Dal Jones
Bond issues of governments and businesses typically are rated by rating agencies, such as Standard and Poor’s Corporation (S&P), Moody’s Investors Service and Fitch Ratings, to assess the likelihood that the issuer will default on the timely payment of coupon and/or principal.
Bond issues of governments and businesses typically are rated by rating agencies, such as Standard and Poor’s Corporation (S&P), Moody’s Investors Service and Fitch Ratings, to assess the likelihood that the issuer will default on the timely payment of coupon and/or principal.
Which of the following is privilege allowing existing shareholders to buy shares of an issue of common stock shortly before it is offered to the public, at a specified and usually discounted price?
I. Class A Shareholder Rights
II. Big Shareholder Rights
III. Subscription Rights
IV. Promotional Rights
This is a privilege allowing existing shareholders to buy shares of an issue of common stock shortly before it is offered to the public, at a specified and usually discounted price
This is a privilege allowing existing shareholders to buy shares of an issue of common stock shortly before it is offered to the public, at a specified and usually discounted price
Which of the following features are common to fixed income securities?
I. Par, Face or Maturity Value
II. Coupon Rate
III. Maturity Date
IV. Price
I. Par, Face or Maturity Value
II. Coupon Rate
III. Maturity Date
IV. Price
These are the common features of fixed income securities.
I. Par, Face or Maturity Value
II. Coupon Rate
III. Maturity Date
IV. Price
These are the common features of fixed income securities.
Which of the following are true of Singapore Savings Bonds?
I. Redemption is done in multiples of $500, up to the amount invested.
II. Interest income from the Savings Bonds is exempt from tax.
III. Investors can redeem their Savings Bond in any given month before maturity.
IV. There is no penalty for exiting the investment early.
Investors can redeem their Savings Bond in any given month before maturity and there is no penalty for exiting the investment early. Redemption is done in multiples of $500, up to the amount invested. Accrued interest on the redemption amount will be paid. Interest income from the Savings Bonds is exempt from tax.
Investors can redeem their Savings Bond in any given month before maturity and there is no penalty for exiting the investment early. Redemption is done in multiples of $500, up to the amount invested. Accrued interest on the redemption amount will be paid. Interest income from the Savings Bonds is exempt from tax.
Bond ratings are based on which of the following factors?
I. Qualitative factors
II. Quantitative factors
III. Definitive factors
IV. Constructive factors
Bond ratings are based on both qualitative and quantitative factors, which include the following: issuer’s financial and profitability ratios, subordinated and guarantee provisions (if any), outlook on the issuers, etc
Bond ratings are based on both qualitative and quantitative factors, which include the following: issuer’s financial and profitability ratios, subordinated and guarantee provisions (if any), outlook on the issuers, etc
Long-term debts can be issued by the following except?
I. Governments
II. Corporations
III. NGOs
IV. Charities
Long-term debts can be issued by governments and/or corporations.
Long-term debts can be issued by governments and/or corporations.
In a financial crisis, the investor potentially might not be able to sell the bond at all because the markets are in chaos. However, this risk does not matter if the investor intends to do which of the following?
I. Hold the bond to maturity.
II. Diversify the bond.
III. Reinvest into the bond.
IV. Trade the bond with other investors through money market instruments.
In a financial crisis, the investor potentially might not be able to sell the bond at all because the markets are in chaos. However, this risk does not matter if the investor intends to hold the bond to maturity.
In a financial crisis, the investor potentially might not be able to sell the bond at all because the markets are in chaos. However, this risk does not matter if the investor intends to hold the bond to maturity.
Time deposits tend to provide a higher return than the savings accounts because of which of the following?
I. The time commitment made by the investor
II. The security the banks offer
III. The special privileges provided to the investors
IV. The earnings made from the banks
Time deposits tend to provide a higher return than the savings accounts because of the time commitment made by the investor.
Time deposits tend to provide a higher return than the savings accounts because of the time commitment made by the investor.
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