CMFAS M10 REIT Exam Free Trial Set Two
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
CMFASExam Practice Questions Free Preview
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 CMFASExam set two free trial
Get all premium practice questions, key study notes, and bonus tips today!
>> Learn more about our offer <<
Emma Finch
Customer Success Manager | CMFASexam
- 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
What do you call the classification of torts that are increasingly relevant in the analysis of mortgages/foreclosures, title systems, REITs, and securitization because of the significant regulation of and increasing government intervention in capital markets and financial institutions?
Correct
Take into account the actuality that Constitutional tort theories have not changed significantly during the past 15 years, and most of the related litigation revolves around the immunity of the government and government employees, special tort statutes, and limitation of damages. Furthermore, the existing literature on risk regulation for mortgages and foreclosures, REITs, title systems, and securitization is well developed but does not address the economic effects of constitutions or public health issues.
Incorrect
Take into account the actuality that Constitutional tort theories have not changed significantly during the past 15 years, and most of the related litigation revolves around the immunity of the government and government employees, special tort statutes, and limitation of damages. Furthermore, the existing literature on risk regulation for mortgages and foreclosures, REITs, title systems, and securitization is well developed but does not address the economic effects of constitutions or public health issues.
-
Question 2 of 20
2. Question
What do you call the terms that are referred to as the established legal principles that have substantial impact on risk regulation, transaction costs and monitoring costs, and the efficiency of mortgages/foreclosures, title systems, REITs, and securitization in most countries?
Correct
Please remember that modern banking is now almost inseparable from insurance, and many non-insurance entities now provide direct or indirect insurance products. Banks and nonbank entities that trade derivatives provide insurance (entities that provide third-party guarantees are essentially providing insurance). Also, banks differ from insurance companies in various ways.
Incorrect
Please remember that modern banking is now almost inseparable from insurance, and many non-insurance entities now provide direct or indirect insurance products. Banks and nonbank entities that trade derivatives provide insurance (entities that provide third-party guarantees are essentially providing insurance). Also, banks differ from insurance companies in various ways.
-
Question 3 of 20
3. Question
The lack of what devices in mortgages or deed trusts can substantially impair the contractual rights of lenders and borrowers in a mortgage?
Correct
You must consider the authenticity that the borrower and the lender have constitutionally guaranteed property interests in entering into contracts as they see fit, so long as such contracts do not have a negative effect on third parties—such property interests arise from state constitutional law, state contract laws, state/municipal property laws, expectations, and norms. Furthermore, the lender and borrower have constitutionally guaranteed rights to state contractual procedures for managing default of the mortgage (which may include foreclosure).
Incorrect
You must consider the authenticity that the borrower and the lender have constitutionally guaranteed property interests in entering into contracts as they see fit, so long as such contracts do not have a negative effect on third parties—such property interests arise from state constitutional law, state contract laws, state/municipal property laws, expectations, and norms. Furthermore, the lender and borrower have constitutionally guaranteed rights to state contractual procedures for managing default of the mortgage (which may include foreclosure).
-
Question 4 of 20
4. Question
In relation to the Act pertaining to the regulation of activities and institutions in the securities and derivatives industry, what is defined as controlling the development of the definition of a financial benchmark for the purpose of determining a financial benchmark?
Correct
Please remember that another description for the act of “administering a financial benchmark” is controlling the development of the methodology of determining a financial benchmark, and applying a formula or other methods of calculation to information or expressions of opinion in order to determine a financial benchmark, or monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a financial benchmark.
Incorrect
Please remember that another description for the act of “administering a financial benchmark” is controlling the development of the methodology of determining a financial benchmark, and applying a formula or other methods of calculation to information or expressions of opinion in order to determine a financial benchmark, or monitoring and conducting surveillance of any information or expressions of opinion provided for the purpose of determining a financial benchmark.
-
Question 5 of 20
5. Question
The semi-annual report or annual report prepared by the REIT under its accounts and reports need not be prepared, audited (where applicable), and sent when they cover what range of business period?
Correct
Kindly retain the further learning that the manager (or the VCC, in the case of a scheme like REITs, constituted as a VCC or is a sub-fund thereof) should prepare the half-yearly financial statements and the audited financial statements, for the semi-annual report and annual report respectively. Beyond that, the semi-annual report and annual report, based on a scheme’s financial year, should contain exposure to financial derivatives, amount of redemptions and subscriptions for the period under review, and amount of related-party transactions for the period under review.
Incorrect
Kindly retain the further learning that the manager (or the VCC, in the case of a scheme like REITs, constituted as a VCC or is a sub-fund thereof) should prepare the half-yearly financial statements and the audited financial statements, for the semi-annual report and annual report respectively. Beyond that, the semi-annual report and annual report, based on a scheme’s financial year, should contain exposure to financial derivatives, amount of redemptions and subscriptions for the period under review, and amount of related-party transactions for the period under review.
-
Question 6 of 20
6. Question
As a part of the criteria for licensing among REITs, individuals who are engaged in the following functions on behalf of the REIT manager should be appointed as the REIT manager’s representatives, except for?
I. Investment management
II. Manufacturing market
III. Asset management
IV. Investor relationsCorrect
Don’t lose sight of the fact that individuals who are based overseas and engaged in these functions on behalf of the REIT manager (as mentioned in options I, III, and IV) should be appointed as representatives of the REIT manager, but they will not count towards satisfying the minimum of three full-time Singapore-resident representatives among REITs in Singapore.
Incorrect
Don’t lose sight of the fact that individuals who are based overseas and engaged in these functions on behalf of the REIT manager (as mentioned in options I, III, and IV) should be appointed as representatives of the REIT manager, but they will not count towards satisfying the minimum of three full-time Singapore-resident representatives among REITs in Singapore.
-
Question 7 of 20
7. Question
What term pertains to a financial instrument which derives its value from, or whose value depends on, the characteristics of one or more underlying assets, reference rates or indices under the scheme requirements for REITs?
Correct
Keep in your perception that in the case where a recognized scheme or the underlying scheme which an authorized scheme feeds into intends to use or invest in financial derivatives, a prominent statement drawing attention to this intention should be included in the marketing material of the recognized scheme or authorized scheme which feeds into an underlying scheme. Also, financial derivatives may only be used for the purpose of hedging existing positions in a portfolio, or EPM provided that the financial derivatives are not used to gear the overall portfolio.
Incorrect
Keep in your perception that in the case where a recognized scheme or the underlying scheme which an authorized scheme feeds into intends to use or invest in financial derivatives, a prominent statement drawing attention to this intention should be included in the marketing material of the recognized scheme or authorized scheme which feeds into an underlying scheme. Also, financial derivatives may only be used for the purpose of hedging existing positions in a portfolio, or EPM provided that the financial derivatives are not used to gear the overall portfolio.
-
Question 8 of 20
8. Question
What is referred to as the operating expenses incurred in the management of a scheme, expressed as a percentage of its net assets among trusts like REITs?
Correct
Make sure to remember that the expense ratio should be calculated in accordance with the guidelines for the disclosure of expense ratios issued by the Authority in-charge of the REITs. Moreover, another term to remember under the scheme requirements for REITs is the “Turnover ratio”, which means a ratio of the number of times per year that a dollar of assets is reinvested. It should be calculated based on the lesser of purchases or sales of underlying investments of a scheme expressed as a percentage of daily average net asset value.
Incorrect
Make sure to remember that the expense ratio should be calculated in accordance with the guidelines for the disclosure of expense ratios issued by the Authority in-charge of the REITs. Moreover, another term to remember under the scheme requirements for REITs is the “Turnover ratio”, which means a ratio of the number of times per year that a dollar of assets is reinvested. It should be calculated based on the lesser of purchases or sales of underlying investments of a scheme expressed as a percentage of daily average net asset value.
-
Question 9 of 20
9. Question
As listed investment vehicles, REITs are required to comply with the initial and ongoing listing obligations under which listing manual?
Correct
It should be noted that the SGX-ST listing manual also dictates among its constituent companies the prerequisite to relative documents which specify that the salaries of the executive directors of the said company strictly do not include a percentage or a commission from the turnover. In addition to this fact, it is also stated by the SGX-ST listing manual that all fees to be paid to the executive directors of the company must be represented by a fixed total.
Incorrect
It should be noted that the SGX-ST listing manual also dictates among its constituent companies the prerequisite to relative documents which specify that the salaries of the executive directors of the said company strictly do not include a percentage or a commission from the turnover. In addition to this fact, it is also stated by the SGX-ST listing manual that all fees to be paid to the executive directors of the company must be represented by a fixed total.
-
Question 10 of 20
10. Question
Taking into account the consideration to enhance the existing independence requirement of REITs, which of the following is not a prerequisite that must be satisfied by an “independent director”?
I. Independence from any substantial shareholder of the REIT manager
II. Independence from any substantial unitholder of the REIT
III. Not having the right to appoint the directors of the REIT manager
IV. Not serving on the Board of the REIT manager for a continuous period of nine years or longerCorrect
According to guidelines of Monetary Authority of Singapore under section 1, article B (Board Independence Requirements), there are 2 ways to ameliorate the self-dependence of the Board; 1) at least 50% of the Board must appoint independent directors. If the unitholders has the right to appoint the directors of the REIT manager, 1/3 of the Board is sufficient enough to appoint independent directors. 2) All Boards can be the overall independent.
Incorrect
According to guidelines of Monetary Authority of Singapore under section 1, article B (Board Independence Requirements), there are 2 ways to ameliorate the self-dependence of the Board; 1) at least 50% of the Board must appoint independent directors. If the unitholders has the right to appoint the directors of the REIT manager, 1/3 of the Board is sufficient enough to appoint independent directors. 2) All Boards can be the overall independent.
-
Question 11 of 20
11. Question
In terms of investment and property funds among REITs, what do we call the instruments or investments of such high liquidity and safety that they are as good as cash?
Correct
Acknowledge the fact that a deposited property, on the other hand, means the value of the property fund’s total assets based on the latest valuation, or in the case of a stapled securities structure, the value of the stapled group’s total assets based on the latest valuation. Further comprising, the Controlling unitholder means a person who in fact exercises control over the property fund.
Incorrect
Acknowledge the fact that a deposited property, on the other hand, means the value of the property fund’s total assets based on the latest valuation, or in the case of a stapled securities structure, the value of the stapled group’s total assets based on the latest valuation. Further comprising, the Controlling unitholder means a person who in fact exercises control over the property fund.
-
Question 12 of 20
12. Question
A director of the manager of an authorized real estate investment trust shall do the following tasks except for which options from below?
I. Take all reasonable steps to ensure that the manager discharges its duties
II. Act in the best interests of all the participants of the authorized REIT as a whole
III. No action or proceedings may be brought by or on behalf of all or any of the participants of an authorized REIT
IV. Give priority to the interests of all the participants of the authorized REIT as a wholeCorrect
Be mindful of the fact that on the matter of giving priority to the interests of all the participants of the authorized REIT as a whole by the director of the manager, this shall be further applied over the interests of the manager and the shareholders of the manager in the event of a conflict between the interests of all the participants as a whole and the interests of the manager or the shareholders of the manager.
Incorrect
Be mindful of the fact that on the matter of giving priority to the interests of all the participants of the authorized REIT as a whole by the director of the manager, this shall be further applied over the interests of the manager and the shareholders of the manager in the event of a conflict between the interests of all the participants as a whole and the interests of the manager or the shareholders of the manager.
-
Question 13 of 20
13. Question
Prior to every annual general meeting of the REIT, or at least once in a calendar year, the Board shall review and determine which of the following cases?
I. Whether each existing director is independent of every substantial shareholder of the holder and substantial unitholder of the REIT
II. Whether each existing director is independent of management and business relationships with the holder and the REIT
III. Whether each existing director is independent of judgment and ability to act in the interests of all the unitholders
IV. Whether each existing director is independent of a substantial shareholder of the holder and a substantial unitholder of the REITCorrect
Also, bear in mind that a director of a holder of a capital markets services license for REIT management shall be considered to be independent of management and business relationships with the holder (whether or not the holder is acting for or on behalf of the REIT) and the REIT if the director has no management relationships with the holder or with any of its related corporations; and the real estate investment trust.
Incorrect
Also, bear in mind that a director of a holder of a capital markets services license for REIT management shall be considered to be independent of management and business relationships with the holder (whether or not the holder is acting for or on behalf of the REIT) and the REIT if the director has no management relationships with the holder or with any of its related corporations; and the real estate investment trust.
-
Question 14 of 20
14. Question
The leverage limit among REITs seeks to ensure that REITs do not overextend themselves by going after highly geared property acquisitions. Currently, REITs are subject to what leverage limit?
Correct
Keep in mind that the leverage limit also helps to mitigate the risk of a REIT having to liquidate a major asset in its portfolio, at the bottom of a property market cycle, in order to service or repay debts. Also, note that having a higher leverage limit can make the REIT more flexible in optimizing its capital structure. In light of recalibrating the leverage limit, one option is to use a combination of leverage limit and minimum interest coverage ratio or “ICR.”
Incorrect
Keep in mind that the leverage limit also helps to mitigate the risk of a REIT having to liquidate a major asset in its portfolio, at the bottom of a property market cycle, in order to service or repay debts. Also, note that having a higher leverage limit can make the REIT more flexible in optimizing its capital structure. In light of recalibrating the leverage limit, one option is to use a combination of leverage limit and minimum interest coverage ratio or “ICR.”
-
Question 15 of 20
15. Question
Both the leverage limit and the minimum ICR have different objectives. If a leverage limit secures that a REIT is well-capitalized, what is the objective of a minimum ICR?
Correct
Remember that interest coverage ratio (or “ICR”) is a measure of a REIT’s ability to service its debt obligations from regular sources of income. Additionally, if the use of a combination of leverage limit and ICR is appropriate, one possible approach to recalibrate the leverage limit is to allow REITs to take on more debt only if they are able to meet a minimum ICR.
Incorrect
Remember that interest coverage ratio (or “ICR”) is a measure of a REIT’s ability to service its debt obligations from regular sources of income. Additionally, if the use of a combination of leverage limit and ICR is appropriate, one possible approach to recalibrate the leverage limit is to allow REITs to take on more debt only if they are able to meet a minimum ICR.
-
Question 16 of 20
16. Question
Today, REIT managers are often wholly-owned by the property development company that had set up and listed the REIT by injecting its properties into the REIT. Following this description, who is referred to as “company” from the aforesaid statement?
Correct
Draw attention to the fact that following the REIT’s listing, it is not uncommon for the REIT to enter into service agreements or property transactions with the Sponsor or its subsidiaries. Because of this structure, REITs have over the last decade become an investment option that delivers tax-efficient, stable, and regular returns for investors. Also, Singapore is now one of the largest REIT markets in Asia.
Incorrect
Draw attention to the fact that following the REIT’s listing, it is not uncommon for the REIT to enter into service agreements or property transactions with the Sponsor or its subsidiaries. Because of this structure, REITs have over the last decade become an investment option that delivers tax-efficient, stable, and regular returns for investors. Also, Singapore is now one of the largest REIT markets in Asia.
-
Question 17 of 20
17. Question
Which of the following can not be appointed as the chairman of its Board by the holder of a capital markets services license for REIT management?
I. Any of its executive directors
II. Any person who is a member of the immediate family of the chief executive officer of the holder
III. Any director of the holder of a capital markets services license for fund management
IV. Any person who is not a director of the holderCorrect
Underline the fact that the holder of a capital markets services license for REIT trust management shall have a Board which satisfies requirements such as the participants of a REIT must have the right to vote on the appointment of directors to the Board, and at least one-third of the Board shall comprise independent directors.
Incorrect
Underline the fact that the holder of a capital markets services license for REIT trust management shall have a Board which satisfies requirements such as the participants of a REIT must have the right to vote on the appointment of directors to the Board, and at least one-third of the Board shall comprise independent directors.
-
Question 18 of 20
18. Question
What do you call the terms that are referred to as the established legal principles that have substantial impact on risk regulation, transaction costs and monitoring costs, and the efficiency of mortgages/foreclosures, title systems, REITs, and securitization in most countries?
Correct
Please remember that modern banking is now almost inseparable from insurance, and many non-insurance entities now provide direct or indirect insurance products. Banks and nonbank entities that trade derivatives provide insurance (entities that provide third-party guarantees are essentially providing insurance). Also, banks differ from insurance companies in various ways.
Incorrect
Please remember that modern banking is now almost inseparable from insurance, and many non-insurance entities now provide direct or indirect insurance products. Banks and nonbank entities that trade derivatives provide insurance (entities that provide third-party guarantees are essentially providing insurance). Also, banks differ from insurance companies in various ways.
-
Question 19 of 20
19. Question
As for the case in the United States and Europe, the lack of fiscal federalism for matters pertaining to mortgages, foreclosures, title systems, and REITs exacerbates risk and increases transaction costs, monitoring costs, and enforcement costs in what sort of ways?
I. It describes the effects of ongoing regulations and incentives to share
II. It reduces governments’ abilities to monitor the true risks of transactions
III. It permits and facilitates costly regulatory arbitrage among the states (or countries)
IV. It facilitates the optimal practices that may not be implemented by the banksCorrect
Always recall that one more way that lack of fiscal federalism for matters as mentioned in the question exacerbates risk and increases transaction costs, monitoring costs, and enforcement costs, is through increasing taxes because it substantially increases the cost of government and also creates costly uncertainty (all of which are funded by higher taxes). Likewise, it also precludes “learning effects” because best practices in any state can be implemented in only that state/jurisdiction.
Incorrect
Always recall that one more way that lack of fiscal federalism for matters as mentioned in the question exacerbates risk and increases transaction costs, monitoring costs, and enforcement costs, is through increasing taxes because it substantially increases the cost of government and also creates costly uncertainty (all of which are funded by higher taxes). Likewise, it also precludes “learning effects” because best practices in any state can be implemented in only that state/jurisdiction.
-
Question 20 of 20
20. Question
Among under which of the following cases can the “Nexus” be established between two entities?
I. If the non-REIT entity is the Sponsor or a related entity of the Sponsor
II. If the non-REIT entity is following operational restrictions at the stapled group level
III. If the non-REIT entity has business operations that are in the same industry segment as the REIT
IV. If the non-REIT entity is operating a business or providing a service that is ancillary to the assets held by the REITCorrect
Be reminded that the “Nexus” can also be established between the two entities if both are in the same industry or one provides ancillary services to the other (not necessary for the non-REIT entity to be the sponsor or sponsor-related). Beyond that, the refinement to the “nexus” requirements will accommodate more business models, particularly nonsponsored REITs.
Incorrect
Be reminded that the “Nexus” can also be established between the two entities if both are in the same industry or one provides ancillary services to the other (not necessary for the non-REIT entity to be the sponsor or sponsor-related). Beyond that, the refinement to the “nexus” requirements will accommodate more business models, particularly nonsponsored REITs.
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