CMFAS M4B Exam Free Trial
Let us do all the heavy works so that you can study efficiently.
Quiz-summary
0 of 20 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
Information
CMFAS Module 4B Free Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 20 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
-
Congratulations! You have completed the first free practice question
Enter your email below to start the next free practice questions immediately
Or
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- Answered
- Review
-
Question 1 of 20
1. Question
When does a short sell order take place?
Correct
A short sell order is considered to have been made when the seller does not have interest in the product at the time of order. Short sell orders for specified capital markets products are required to be disclosed to an approved exchange.
Incorrect
A short sell order is considered to have been made when the seller does not have interest in the product at the time of order. Short sell orders for specified capital markets products are required to be disclosed to an approved exchange.
-
Question 2 of 20
2. Question
What purpose does a discretionary mandate serve?
Correct
Identical to the arrangement of institutional participants with multiple trading desks, multiple fund managers may manage an investor’s portfolio under separate discretionary mandates. In accordance to this, the MAS bestows flexibility on investors with regards to disclosing short sell orders and short position at a fund manager level.
Incorrect
Identical to the arrangement of institutional participants with multiple trading desks, multiple fund managers may manage an investor’s portfolio under separate discretionary mandates. In accordance to this, the MAS bestows flexibility on investors with regards to disclosing short sell orders and short position at a fund manager level.
-
Question 3 of 20
3. Question
As listed on the approved exchange, which of the following specified capital market products are subject to short sell order disclosures and are expected to comply with short position reporting requirements?
I. Any share of a corporation
II. Any unit in a government trust
III. Any unit in a real estate investment trust
IV. Any unit in individual trustCorrect
Any share of a corporation, unit in a business trust, and unit in a real estate investment trust are defined as the approved exchange as securities subject to short sell order disclosures and short position reporting requirements. Derivatives are merely required to be reported as a short sell order once they are exercised and once obligations are created.
Incorrect
Any share of a corporation, unit in a business trust, and unit in a real estate investment trust are defined as the approved exchange as securities subject to short sell order disclosures and short position reporting requirements. Derivatives are merely required to be reported as a short sell order once they are exercised and once obligations are created.
-
Question 4 of 20
4. Question
What is the role of the portfolio manager?
Correct
A portfolio manager is given the primary responsibility of making the firm’s investment decisions. At a legal entity level, a single portfolio manager oversees three trading desks.
Incorrect
A portfolio manager is given the primary responsibility of making the firm’s investment decisions. At a legal entity level, a single portfolio manager oversees three trading desks.
-
Question 5 of 20
5. Question
What obligation does a trustee have in relation to the specified capital markets held in a trust?
Correct
A trustee is expected to report and make disclosures regarding short sell orders and short positions contained in the trust for which it acts as a trustee. The MAS gives trustees the privilege of flexibility with regards to the level at which orders and positions may be consolidated.
Incorrect
A trustee is expected to report and make disclosures regarding short sell orders and short positions contained in the trust for which it acts as a trustee. The MAS gives trustees the privilege of flexibility with regards to the level at which orders and positions may be consolidated.
-
Question 6 of 20
6. Question
Which of the following describes the arrangement at a fund manager level?
I. An investor has two non-discretionary investment portfolios and one discretionary investment portfolio. Despite delegating management of discretionary portfolios to separate fund managers, the investor may still consolidate orders and positions of the three portfolios at his level.
II. An investor has two discretionary investment portfolios, under the management of different fund managers. Lacking sight of the investment decisions made by the fund managers, the investor may choose not to consolidate the orders and positions at his level.
III. Arrangements are made for the disclosure of each fund manager on behalf of the investor regarding the short orders or short positions arising from the discretionary portfolios they manage
IV. Care should be taken to ensure that orders and positions are not double counted
Correct
The MAS provides an investor with the liberty to disclose short orders and positions at a fund manager level when dealing with discretionary investments portfolios. Delegating decisions with regards to investment portfolios to fund managers may accordingly enable an investor to establish arrangements for the disclosure of short orders or positions on their behalf. Diligence and care must be ascertained so as to prevent double counting.
Incorrect
The MAS provides an investor with the liberty to disclose short orders and positions at a fund manager level when dealing with discretionary investments portfolios. Delegating decisions with regards to investment portfolios to fund managers may accordingly enable an investor to establish arrangements for the disclosure of short orders or positions on their behalf. Diligence and care must be ascertained so as to prevent double counting.
-
Question 7 of 20
7. Question
Which of the following describes the arrangement at trading desk level?
I. Trading desks trade independently from each other
II. Additional resources are required to consolidate orders and positions
III. The firm must report the short orders and short positions that are equivalent or exceeds the threshold at an aggregated level
Iv. A single task manager is tasked to manage multiple trading desksCorrect
Each trading desk operates under a different portfolio manager and under a different investment mandate. Trading among these trading desks occurs independently from each other, would thus necessitate additional resources in order to consolidate orders and positions. To eliminate the burden imposed by this requirement, the firm is given the option to disclose short sell orders or positions at trading desk level.
Incorrect
Each trading desk operates under a different portfolio manager and under a different investment mandate. Trading among these trading desks occurs independently from each other, would thus necessitate additional resources in order to consolidate orders and positions. To eliminate the burden imposed by this requirement, the firm is given the option to disclose short sell orders or positions at trading desk level.
-
Question 8 of 20
8. Question
Which of the following describes the arrangement at trust level?
I. It may be challenging for the trustee to consolidate the orders and positions across the two trusts.
II. Trusts are managed as one
III. The trustee is provided with the liberty in choosing to disclose short sell orders and report short positions at individual trust level, or to appoint a third party to do so
IV. In appointing a manager to disclose on the behalf of the trustee, care must be exercised in order to prevent double countingCorrect
Under trust level, a trustee is managed independently of each other. Trustees are given the option to choose to disclose short sell orders and short positions at an individual level, or to appoint a third party, such as a manager, to do so. It must be noted, however, that due care is exercised in order to prevent the double counting of disclosures.
Incorrect
Under trust level, a trustee is managed independently of each other. Trustees are given the option to choose to disclose short sell orders and short positions at an individual level, or to appoint a third party, such as a manager, to do so. It must be noted, however, that due care is exercised in order to prevent the double counting of disclosures.
-
Question 9 of 20
9. Question
Which of the following deems true if trading in specified capital markets products is suspended?
I. The short positions in the product are no longer required to be reported on a given position day
II. The opening price of the last trading day before the suspension must be used as basis in determining whether the short position is equivalent to or exceeds the short position threshold on position day
III. The short positions in the product are required to be reported on settlement day
IV. The closing price of the last trading day before the suspension must be used as basis in determining whether the short position is equivalent to or exceeds the short position threshold on position dayCorrect
In the case that trading in specified capital markets products is suspended, the requirement of reporting short positions in the products on position day still applies. Before the day of suspension, the closing price provided on the last trading day shall serve as an indicator as to whether or not the short position equals or exceeds the short position threshold on position day.
Incorrect
In the case that trading in specified capital markets products is suspended, the requirement of reporting short positions in the products on position day still applies. Before the day of suspension, the closing price provided on the last trading day shall serve as an indicator as to whether or not the short position equals or exceeds the short position threshold on position day.
-
Question 10 of 20
10. Question
Which of the following are true with regards to the reporting of short positions?
I. The reporting of short positions in any specified capital market products is required under Section 137ZK of the SFA if the short position is equivalent to or exceeds the short position threshold on position day
II. The short position threshold is the lower of: (a) 0.2% of total issued shares in the relevant class of shares or units in the relevant class of units of a business trust or real estate investment trust; or (b) SGD2,000,000 in aggregate value.
III. A person is prohibited to report short positions if it does not meet the short position threshold
IV. In cases of doubt, a person may opt to report its short position in any specified capital markets products despite falling short of the short position threshold.Correct
The SFA guidance on the reporting of short positions states that all short positions in specified capital markets if the short position is equivalent to or exceeds the short position threshold on position day. In determining this fact, a threshold is indicated as the lower value between 0.2% of total issued shares in the relevant class of shares or units in the relevant class of units of a business trust or real estate investment trust or SGD2,000,000 in aggregate value. To effciently deal with uncertainties that may arise, a person is freely given the option to report the short positions despite not meeting the required threshold.
Incorrect
The SFA guidance on the reporting of short positions states that all short positions in specified capital markets if the short position is equivalent to or exceeds the short position threshold on position day. In determining this fact, a threshold is indicated as the lower value between 0.2% of total issued shares in the relevant class of shares or units in the relevant class of units of a business trust or real estate investment trust or SGD2,000,000 in aggregate value. To effciently deal with uncertainties that may arise, a person is freely given the option to report the short positions despite not meeting the required threshold.
-
Question 11 of 20
11. Question
Which of the following are considered to be the characteristics of the fidelity fund’s assets of an approved exchange?
I. The assets should be the property of the exchange.
II. The assets should be combined with all other properties of the exchange.
III. The assets should be kept separate from all other properties of the exchange.
IV. The assets should be approved and recognized by the Authority.Correct
Under Part XI of the Securities and Futures Act, each approved exchange shall establish, keep, and administer a fidelity fund. A fidelity fund covers all asset classes of mutual funds that will provide investors diverse choices of funds to help achieve one’s investment goals. The assets of a fidelity fund shall be the property of the exchange, separated from all other properties and be held in a trust.
Incorrect
Under Part XI of the Securities and Futures Act, each approved exchange shall establish, keep, and administer a fidelity fund. A fidelity fund covers all asset classes of mutual funds that will provide investors diverse choices of funds to help achieve one’s investment goals. The assets of a fidelity fund shall be the property of the exchange, separated from all other properties and be held in a trust.
-
Question 12 of 20
12. Question
Which of the following indicates a short position?
Correct
A short position transpires when a person is interested in a value of a capital market product that is less than the quantity a person has to bring about at some point in the future. It is an investor approach wherein they sell what they borrowed in a short amount of time. The amount should be netted against the long interest of the product and shall not constitute the whole sum of the selling transaction. Its varying significance is required to be reported to MAS.
Incorrect
A short position transpires when a person is interested in a value of a capital market product that is less than the quantity a person has to bring about at some point in the future. It is an investor approach wherein they sell what they borrowed in a short amount of time. The amount should be netted against the long interest of the product and shall not constitute the whole sum of the selling transaction. Its varying significance is required to be reported to MAS.
-
Question 13 of 20
13. Question
Which of the following shall the reporting person indicate in the Short Position Reporting Form?
I. Position day when the short position has been determined
II. Stock code of specified capital markets product
III. Number of shares in the short position
IV. Disclosures regarding trends in the marketCorrect
The persons legally responsible for reporting short positions are those who deliver specified market products that may indicate a short position as a result of the transaction. They must report the short position to MAS by preparing a Short Position Reporting Form that will be submitted within two (2) days after the position day. The Short Position Reporting Form shall indicate the position day, the stock code of the specified capital markets product, and the number of shares in the short position by the reporting person.
Incorrect
The persons legally responsible for reporting short positions are those who deliver specified market products that may indicate a short position as a result of the transaction. They must report the short position to MAS by preparing a Short Position Reporting Form that will be submitted within two (2) days after the position day. The Short Position Reporting Form shall indicate the position day, the stock code of the specified capital markets product, and the number of shares in the short position by the reporting person.
-
Question 14 of 20
14. Question
Which of the following is not a prescribed written law in the Securities and Futures Act?
I. Intellectual Property Law
II. Insurance Act
III. Monetary Authority of Singapore Act
IV. Complying with the Personal Data ActCorrect
The purpose of laws is to provide control and authority over its constituents. The prescribed laws specified in the Securities and Futures Act are the act itself, the Banking Act, the Finance Companies Act, the Financial Advisers Act, the Insurance Act, the Monetary Authority of Singapore Act, Payment Services Act 2019, and/or any other written law as prescribed by the Authority. These prescribed laws govern the Securities and Futures Act and its parts, divisions, and subdivisions.
Incorrect
The purpose of laws is to provide control and authority over its constituents. The prescribed laws specified in the Securities and Futures Act are the act itself, the Banking Act, the Finance Companies Act, the Financial Advisers Act, the Insurance Act, the Monetary Authority of Singapore Act, Payment Services Act 2019, and/or any other written law as prescribed by the Authority. These prescribed laws govern the Securities and Futures Act and its parts, divisions, and subdivisions.
-
Question 15 of 20
15. Question
Which of the following should be included in confirmations of back office practices?
I. Date of transaction
II. Rate, amount, and currency
III. Name and location of counterparty
IV. Verification from the relevant master agreementCorrect
All transactions in financial markets should be confirmed in writing or electronic means by the parties and should be addressed to the back office or settlements department of the counterparty. The content of the confirmation shall be modified in accordance to the products dealt with for correct content and format for any particular product, and shall include the date of transaction, by which means affected, name and location of counterparty, rate, amount and currency, type and size of deal, relevant dates, standard terms applicable set out in the relevant master agreement, and all other relevant information.
Incorrect
All transactions in financial markets should be confirmed in writing or electronic means by the parties and should be addressed to the back office or settlements department of the counterparty. The content of the confirmation shall be modified in accordance to the products dealt with for correct content and format for any particular product, and shall include the date of transaction, by which means affected, name and location of counterparty, rate, amount and currency, type and size of deal, relevant dates, standard terms applicable set out in the relevant master agreement, and all other relevant information.
-
Question 16 of 20
16. Question
Why do corporations provide proprietary trading terminals?
Correct
Corporations arrange proprietary trading terminals in order to provide a platform on which institutional investors may enter orders and transact on the overseas market from the premises of Singapore. In that sense, these facilities also bestow upon institutional investors direct access to the overseas market.
Incorrect
Corporations arrange proprietary trading terminals in order to provide a platform on which institutional investors may enter orders and transact on the overseas market from the premises of Singapore. In that sense, these facilities also bestow upon institutional investors direct access to the overseas market.
-
Question 17 of 20
17. Question
Which of the following are true regarding electronic trading facilities?
I. Electronic trading facilities facilitate the trading of corporate and government bonds
II. Participants are not enabled to access the facilities either via a secured website or through proprietary terminals
III. Electronic trading facilities automatically execute and clear a firm-price order if it matches an existing firm-price order
IV. The facility displays the firm orders to all clients even when matches are readily availableCorrect
Electronic trading facilities manage the trading of corporate and government bonds. It works by automatically executing and clearing a firm-price order once a match is found in the form of an existing firm-price order. Since the facility paves way for the automatic matching of orders with firm prices, it becomes reasonable to presume that the orders published on the facility will lead to the conclusion of a transaction.
Incorrect
Electronic trading facilities manage the trading of corporate and government bonds. It works by automatically executing and clearing a firm-price order once a match is found in the form of an existing firm-price order. Since the facility paves way for the automatic matching of orders with firm prices, it becomes reasonable to presume that the orders published on the facility will lead to the conclusion of a transaction.
-
Question 18 of 20
18. Question
Why are regulated market operations required to have sufficient financial, human and system resources?
I. To operate a fair, orderly and transparent market
II. To meet contingencies or disasters
III. To provide adequate security arrangements
IV. To test or review systems and controls on a periodic basisCorrect
Obtaining sufficient financial, human and system resources are among the obligations that are required to be fulfilled by regulated market operators to ensure the operation of fair, orderly and transparent markets, to adequately respond to contingencies and disasters, and to establish adequate security arrangements. An RMO is expected to maintain a degree of resources adequate to support trading activities and meet the business and operational needs.
Incorrect
Obtaining sufficient financial, human and system resources are among the obligations that are required to be fulfilled by regulated market operators to ensure the operation of fair, orderly and transparent markets, to adequately respond to contingencies and disasters, and to establish adequate security arrangements. An RMO is expected to maintain a degree of resources adequate to support trading activities and meet the business and operational needs.
-
Question 19 of 20
19. Question
Which of the following are true regarding the amendments to business or listing rules?
I. The approved exchange should allow for a reasonable period between the time it publishes the final text of the amendment and the effective date of the amendment.
II. The approved exchange does not need to consider the likely effect that the amendment would have on the rights, obligations, operations and systems of its various participants
III. During a consultation, the approved exchange should simultaneously provide potential respondents with a reasonable opportunity to comment on the proposed amendment, including providing an adequate period of notice and an appropriate avenue to provide feedback.
IV. After undertaking a consultation, an approved exchange should provide MAS with a summary of the comments received together with the reasons for accepting or rejecting such comments, when submitting a notification under regulation 19(1) of the SF (Markets) Regs.Correct
In making amendments to business or listing rules, approved exchanges or RMOs must determine the impact of the changes on the participants. In doing so, they must allot a reasonable time between publish date and effectivity date, give the participants with the opportunity to comment on the proposals made by means of a consultation, and provide the MAS with a summary of the comments received post-consultation
Incorrect
In making amendments to business or listing rules, approved exchanges or RMOs must determine the impact of the changes on the participants. In doing so, they must allot a reasonable time between publish date and effectivity date, give the participants with the opportunity to comment on the proposals made by means of a consultation, and provide the MAS with a summary of the comments received post-consultation
-
Question 20 of 20
20. Question
Why are approved exchanges obliged to have appropriate and adequate surveillance and enforcement programmes in place?
I. To effectively monitor compliance by its members with its business rules
II. To discipline its members in a fair and objective manner
III. To protect the interests of the investing public
IV. To meet contingencies or disastersCorrect
Approved exchanges are expected to maintain appropriate and adequate surveillance and enforcement programmes in place to be able to monitor compliance of members with business rules and ensure that members are disciplined through fair and objective means. These support the smooth and stable operation of the market.
Incorrect
Approved exchanges are expected to maintain appropriate and adequate surveillance and enforcement programmes in place to be able to monitor compliance of members with business rules and ensure that members are disciplined through fair and objective means. These support the smooth and stable operation of the market.
Learn how you can reduce CMFAS Exam study time by 53% and achieve success completely for free
- Start Free practice questions set two
- Mistakes people make when preparing exam and how to avoid it
- When to know if you are ready for to take the exam
- How this one little trick can increase your pass rate by another 10% instantly
- How to remember what you studied without stressing yourself
- Why people with 20 years of working experience and a CFA, FRM holder failed the CMFAS exam
Why CMFASExam
Enormous Exam Bank
Large number of questions to help you memorize all possible exam content
Explanation Provided
Get detailed explanation right after each questions
Support All Devices
Support all tablets and handheld. Study anywhere
Until You Pass Guarantee
We are very confident with our product. Therefore all purchase comes with a success guarantee
Bonus Tips
Get the bonus article of: 17 Secret Tips To Improve CMFAS Study by 39%
Adhere to CMFAS Examination Format
All questions are adhered to the real examination format to simulate the real exam environment
Frequently Updated
Our exam bank is frequently updated by our examination team
Carefully Crafted
Each questions is carefully crafted by our exam specialist and adhere to the real question formats
Instant Access
No delivery time and fee is needed. Access immediately after payment