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Question 1 of 30
1. Question
In raising capital, which of the following are the types of capital that business can generate?
I. Equity capital
II. Debt capital
III. Government capital
IV. Hybrid capitalCorrect
In raising capital for business, following are the three types of capital that a business can generate:-
(A) Equity
(B) Debt
(C) Hybrid
Debt capital can be defined as the capital that a business raises by taking out a loan from bank or any other financial institution while Hybrid capital, often referred to as “hybrids” generally combine both debt and equity characteristics.Incorrect
In raising capital for business, following are the three types of capital that a business can generate:-
(A) Equity
(B) Debt
(C) Hybrid
Debt capital can be defined as the capital that a business raises by taking out a loan from bank or any other financial institution while Hybrid capital, often referred to as “hybrids” generally combine both debt and equity characteristics. -
Question 2 of 30
2. Question
In raising capital, which of the following involves selling shares of stock in exchange for real money?
Correct
In raising capital for business, following are the three types of capital that a business can generate:-
(A) Equity capital
(B) Debt capital
(C) Hybrid capital
In raising capital, Equity capital involves selling shares of stock in exchange for real money. Debt capital can be defined as the capital that a business raises by taking out a loan from bank or any other financial institution while Hybrid capital, often referred to as “hybrids” generally combine both debt and equity capitals.Incorrect
In raising capital for business, following are the three types of capital that a business can generate:-
(A) Equity capital
(B) Debt capital
(C) Hybrid capital
In raising capital, Equity capital involves selling shares of stock in exchange for real money. Debt capital can be defined as the capital that a business raises by taking out a loan from bank or any other financial institution while Hybrid capital, often referred to as “hybrids” generally combine both debt and equity capitals. -
Question 3 of 30
3. Question
In raising capital, which of the following involves taking on debt in exchange for real money?
Correct
In raising capital for business, following are the three types of capital that a business can generate:-
(A) Equity capital
(B) Debt capital
(C) Hybrid capital
In raising capital, Debt capital involves taking on debt in exchange for real money.In raising capital, Equity capital involves selling shares of stock in exchange for real money. Debt capital can be defined as the capital that a business raises by taking out a loan from bank or any other financial institution while Hybrid capital, often referred to as “hybrids” generally combine both debt and equity capitals.Incorrect
In raising capital for business, following are the three types of capital that a business can generate:-
(A) Equity capital
(B) Debt capital
(C) Hybrid capital
In raising capital, Debt capital involves taking on debt in exchange for real money.In raising capital, Equity capital involves selling shares of stock in exchange for real money. Debt capital can be defined as the capital that a business raises by taking out a loan from bank or any other financial institution while Hybrid capital, often referred to as “hybrids” generally combine both debt and equity capitals. -
Question 4 of 30
4. Question
Which of the following is correct for debt capital?
I. In debt capital, capital is raised by losing the ownership of the asset
II. Debt capital is raised by getting a loan from banks so no loss of ownership
III. In debt capital, heavy interest is to be paid to the financial institution (banks etc)
IV. Debt capital is raised without loss of any shareCorrect
Following are correct for debt capital:-
(A) Debt capital is raised by getting a loan from banks so no loss of ownership
(B) In debt capital, heavy interest is to be paid to the financial institution (banks etc)
(C) Debt capital is raised without loss of any shareIncorrect
Following are correct for debt capital:-
(A) Debt capital is raised by getting a loan from banks so no loss of ownership
(B) In debt capital, heavy interest is to be paid to the financial institution (banks etc)
(C) Debt capital is raised without loss of any share -
Question 5 of 30
5. Question
In Debt capital, which of following are the types of loans?
I. Secured loans
II. Unsecured loans
III. Social loans
IV. Inefficient loansCorrect
In raising debt capital, the following are the two types of loans:-
(A) Secure loans are the loans which are issued to borrowers by putting some as the surety.
(B) Unsecured loans are the loans which are issued to borrowers based solely on the borrower’s creditworthiness and promise to repayIncorrect
In raising debt capital, the following are the two types of loans:-
(A) Secure loans are the loans which are issued to borrowers by putting some as the surety.
(B) Unsecured loans are the loans which are issued to borrowers based solely on the borrower’s creditworthiness and promise to repay -
Question 6 of 30
6. Question
In capital budgeting, how is payback period calculated?
Correct
Payback period is the time required to recover the initial cost of an investment. It is the number of years it would take to get back the initial investment made for a project. The project with the least number of years usually is selected. The payback period is calculated by dividing the amount of the investment by the annual cash flow.
Incorrect
Payback period is the time required to recover the initial cost of an investment. It is the number of years it would take to get back the initial investment made for a project. The project with the least number of years usually is selected. The payback period is calculated by dividing the amount of the investment by the annual cash flow.
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Question 7 of 30
7. Question
In capital budgeting, which is a measure of a company’s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis?
Correct
Economic value added (EVA) is a measure of a company’s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.
Incorrect
Economic value added (EVA) is a measure of a company’s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.
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Question 8 of 30
8. Question
In capital budgeting, what is the difference between the market value of a company and the capital contributed by all investors, both bondholders and shareholders?
Correct
Market value added (MVA) is a calculation that shows the difference between the market value of a company and the capital contributed by all investors, both bondholders and shareholders. In other words, it is the sum of all capital claims held against the company plus the market value of debt and equity.
Incorrect
Market value added (MVA) is a calculation that shows the difference between the market value of a company and the capital contributed by all investors, both bondholders and shareholders. In other words, it is the sum of all capital claims held against the company plus the market value of debt and equity.
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Question 9 of 30
9. Question
In capital budgeting, which is a measure of the performance of different companies’ stocks and shares over time.
I. Total return
II. MVA (Market value-added)
III. EVA (Economic value-added)
IV. TSR (Total shareholder return)Correct
Total shareholder return (TSR) (or simply total return) is a measure of the performance of different companies’ stocks and shares over time. It is calculated by the growth in capital from purchasing a share in the company assuming that the dividends are reinvested each time they are paid.
Incorrect
Total shareholder return (TSR) (or simply total return) is a measure of the performance of different companies’ stocks and shares over time. It is calculated by the growth in capital from purchasing a share in the company assuming that the dividends are reinvested each time they are paid.
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Question 10 of 30
10. Question
why do companies repurchase shares?
I. Because it believes the market has discounted its shares too steeply, to invest in itself
II. Because it believes the market has increased the value of its shares too steeply
III. Because it believes the market has discounted its shares to improve its financial ratios
IV. Because it believes the market has increased the value of its shares to improve its financial ratiosCorrect
The effect of a buyback is to reduce the number of outstanding shares on the market, which increases the ownership stake of the stakeholders. A company might buy back shares because it believes the market has discounted its shares too steeply, to invest in itself, or to improve its financial ratios.
Incorrect
The effect of a buyback is to reduce the number of outstanding shares on the market, which increases the ownership stake of the stakeholders. A company might buy back shares because it believes the market has discounted its shares too steeply, to invest in itself, or to improve its financial ratios.
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Question 11 of 30
11. Question
FATF is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. Which of the following is the abbreviation of FATF?
Correct
The Financial Action Task Force is an independent inter-governmental body or forum that plan, promote and develop policies for protection of the global financial system or markets against terror financing, money laundering and the financing of proliferation of weapons of mass destruction.
Incorrect
The Financial Action Task Force is an independent inter-governmental body or forum that plan, promote and develop policies for protection of the global financial system or markets against terror financing, money laundering and the financing of proliferation of weapons of mass destruction.
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Question 12 of 30
12. Question
Which of the following are the purposes of the financial action task force (FATF) is established?
I. Protection of the global financial system against terror financing
II. Protection of the global financial system against money laundering
III. Protection of the global financial system against new technologies
IV. Protection of the global financial system the financing of proliferation of weapons of mass destructionCorrect
The financial action task force (FATF) is established for the following purpose:-
(A) Protection of the global financial system against terror financing
(B) Protection of the global financial system against money laundering
(C) Protection of the global financial system the financing of proliferation of weapons of mass destructionIncorrect
The financial action task force (FATF) is established for the following purpose:-
(A) Protection of the global financial system against terror financing
(B) Protection of the global financial system against money laundering
(C) Protection of the global financial system the financing of proliferation of weapons of mass destruction -
Question 13 of 30
13. Question
In 2012, which of the following approach adopted by FATF member to combat money laundering and terror financing?
Correct
In 2012, The risk-based approach is adopted by FATF member for the effective implementation of the revised Financial Action Task Force (FATF) International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation.
Incorrect
In 2012, The risk-based approach is adopted by FATF member for the effective implementation of the revised Financial Action Task Force (FATF) International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation.
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Question 14 of 30
14. Question
In the Monetary Authority of Singapore Act, what does authority means?
Correct
In the Monetary Authority of Singapore Act, authority means the Monetary Authority of Singapore and “bank” means a bank licensed under the Banking Act.
Incorrect
In the Monetary Authority of Singapore Act, authority means the Monetary Authority of Singapore and “bank” means a bank licensed under the Banking Act.
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Question 15 of 30
15. Question
What does securities and futures act (CAP. 289) describes?
I. It governs the regulation of activities and institutions in the securities including leveraged foreign exchange trading of financial benchmarks
II. It governs the regulation of activities and institutions in the securities including leveraged foreign exchange trading of clearing facilities
III. It governs the regulation of activities and institutions in the securities excluding leveraged foreign exchange trading of financial benchmarks
IV. It governs the regulation of activities and institutions in the securities excluding leveraged foreign exchange trading of clearing facilitiesCorrect
The Securities and Futures Act (CAP. 289) governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities.
Incorrect
The Securities and Futures Act (CAP. 289) governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities.
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Question 16 of 30
16. Question
Which of the following act governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities?
Correct
The act securities and futures act (CAP 289) governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities.
Incorrect
The act securities and futures act (CAP 289) governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities.
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Question 17 of 30
17. Question
What is the purpose of the Monetary Authority of Singapore (MAS)?
I. MAS issued guidelines to strengthen the accountability of senior managers in key functions in Educational institutions (EIs)
II. MAS issued guidelines to promote ethical behaviour in financial institutions (FIs)
III. MAS issued guidelines to promote ethical behaviour in Educational institutions (EIs)
IV. MAS issued guidelines to strengthen the accountability of senior managers in key functions in financial institutions (FIs)Correct
MAS issued guidelines to strengthen the accountability of senior managers in key functions in financial institutions (FIs) and to promote ethical behavior in FIs. The guidelines were accompanied by an information paper on good practices in these areas.
Incorrect
MAS issued guidelines to strengthen the accountability of senior managers in key functions in financial institutions (FIs) and to promote ethical behavior in FIs. The guidelines were accompanied by an information paper on good practices in these areas.
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Question 18 of 30
18. Question
Who issued guidelines to strengthen the accountability of senior managers in key functions in financial institutions (FIs) and to promote ethical behaviour in FIs?
Correct
The Monetary Authority of Singapore (MAS) issued guidelines to strengthen the accountability of senior managers in key functions in financial institutions (FIs) and to promote ethical behaviour in FIs. The guidelines were accompanied by an information paper on good practices in these areas.
Incorrect
The Monetary Authority of Singapore (MAS) issued guidelines to strengthen the accountability of senior managers in key functions in financial institutions (FIs) and to promote ethical behaviour in FIs. The guidelines were accompanied by an information paper on good practices in these areas.
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Question 19 of 30
19. Question
What does “board” means in the Monetary Authority of Singapore Act?
Correct
In the Monetary Authority of Singapore Act, “board” means the board of directors of the Authority and “Authority” means the Monetary Authority of Singapore established under section 3.
Incorrect
In the Monetary Authority of Singapore Act, “board” means the board of directors of the Authority and “Authority” means the Monetary Authority of Singapore established under section 3.
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Question 20 of 30
20. Question
What does “money market operations” in the Monetary Authority of Singapore Act?
Correct
In the Monetary Authority of Singapore Act, “money market operations” means any transaction undertaken by the Authority as the central bank to manage liquidity in the banking system.
Incorrect
In the Monetary Authority of Singapore Act, “money market operations” means any transaction undertaken by the Authority as the central bank to manage liquidity in the banking system.
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Question 21 of 30
21. Question
Monetary Authority of Singapore shall have a common seal, which of the following is correct regarding seal?
I. The seal may be broken
II. The seal may be changed and altered
III. The seal may be made anew
IV. The authority has not any power to change the seal, alter or any other changesCorrect
Monetary Authority of Singapore shall have a common seal and the seal may, from time to time, be broken, changed, altered and made anew as to the Authority seems fit, and, until a seal is provided under this section, a stamp bearing the inscription “The Monetary Authority of Singapore” may be used as the common seal.
Incorrect
Monetary Authority of Singapore shall have a common seal and the seal may, from time to time, be broken, changed, altered and made anew as to the Authority seems fit, and, until a seal is provided under this section, a stamp bearing the inscription “The Monetary Authority of Singapore” may be used as the common seal.
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Question 22 of 30
22. Question
In the Monetary Authority of Singapore Act, all deeds, documents and other instruments requiring the seal of the authority shall be sealed in the presence of which of the following?
I. The managing director
II. Some other person duly authorized by the authority
III. Governor of the Central bank
IV. Signed by the managing director and by such duly authorized personCorrect
All deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the common seal of the Authority, by the authority of the Authority, in the presence of the managing director and of some other person duly authorised by the Authority to act in that behalf and shall be signed by the managing director and by such duly authorised person.
Incorrect
All deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the common seal of the Authority, by the authority of the Authority, in the presence of the managing director and of some other person duly authorised by the Authority to act in that behalf and shall be signed by the managing director and by such duly authorised person.
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Question 23 of 30
23. Question
According to the Monetary Authority of Singapore Act, who appoints the deputy director of the authority?
Correct
The managing director may, subject to such terms and conditions as the managing director thinks fit, appoint an officer of the Authority who holds the appointment of deputy managing director or its equivalent, to exercise the power and perform the duty of the managing director under subsection (3), and that officer must exercise that power and perform that duty under the direction and control of the managing director.
Incorrect
The managing director may, subject to such terms and conditions as the managing director thinks fit, appoint an officer of the Authority who holds the appointment of deputy managing director or its equivalent, to exercise the power and perform the duty of the managing director under subsection (3), and that officer must exercise that power and perform that duty under the direction and control of the managing director.
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Question 24 of 30
24. Question
In the Monetary Authority of Singapore Act, to avoid doubt, which of the following is correct regarding the power of managing director?
I. He remains responsible for the exercise of the power
II. The performance of the duty by the deputy managing director
III. He doesn’t have any power or authority over the deputy managing director
IV. He may continue to exercise the power and perform the duty, despite the delegation of powerCorrect
In the Monetary Authority of Singapore Act, to avoid doubt, the managing director:-
(a) Remains responsible for the exercise of the power, and the performance of the duty, by the deputy managing director (or equivalent) delegated under subsection (3A); and
(b) May continue to exercise the power and perform the duty, despite the delegation under subsection (3A)Incorrect
In the Monetary Authority of Singapore Act, to avoid doubt, the managing director:-
(a) Remains responsible for the exercise of the power, and the performance of the duty, by the deputy managing director (or equivalent) delegated under subsection (3A); and
(b) May continue to exercise the power and perform the duty, despite the delegation under subsection (3A) -
Question 25 of 30
25. Question
What are the objectives of the Monetary Authority of Singapore Act?
I. To maintain price stability conducive to the sustainable growth of the economy
II. To foster a sound and reputable financial centre and to promote financial stability
III. To ensure prudent and effective management of the official foreign reserves of Singapore
IV. To ensure law and order in the economy and in the countryCorrect
The objectives of the Monetary Authority of Singapore Act are as follows:-
(A) To maintain price stability conducive to the sustainable growth of the economy
(B) To foster a sound and reputable financial centre and to promote financial stability
(C) To ensure prudent and effective management of the official foreign reserves of Singapore
(D) To grow Singapore as an internationally competitive financial centreIncorrect
The objectives of the Monetary Authority of Singapore Act are as follows:-
(A) To maintain price stability conducive to the sustainable growth of the economy
(B) To foster a sound and reputable financial centre and to promote financial stability
(C) To ensure prudent and effective management of the official foreign reserves of Singapore
(D) To grow Singapore as an internationally competitive financial centre -
Question 26 of 30
26. Question
According to the FATF, what is meant by Over-the-counter (OTC)?
Correct
According to the FATF, Over-the-counter (OTC) refers to the process of how securities are traded for companies not listed on a formal exchange. Securities that are traded over-the-counter are traded via a dealer network as opposed to on a centralised exchange.
Incorrect
According to the FATF, Over-the-counter (OTC) refers to the process of how securities are traded for companies not listed on a formal exchange. Securities that are traded over-the-counter are traded via a dealer network as opposed to on a centralised exchange.
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Question 27 of 30
27. Question
What are the functions of the Monetary Authority of Singapore Act?
I. To conduct integrated supervision of the financial services sector and financial stability surveillance
II. To maintain peace in the country
III. To manage the official foreign reserves of Singapore
IV. To develop Singapore as an international financial centreCorrect
The functions of the Monetary Authority of Singapore Act are as follows:-
(A) To act as the central bank of Singapore, conduct monetary policy, issue currency, oversee payment systems and serve as banker to and financial agent of the Government
(B) To conduct integrated supervision of the financial services sector and financial stability surveillance
(C) To manage the official foreign reserves of Singapore
(D) To develop Singapore as an international financial centreIncorrect
The functions of the Monetary Authority of Singapore Act are as follows:-
(A) To act as the central bank of Singapore, conduct monetary policy, issue currency, oversee payment systems and serve as banker to and financial agent of the Government
(B) To conduct integrated supervision of the financial services sector and financial stability surveillance
(C) To manage the official foreign reserves of Singapore
(D) To develop Singapore as an international financial centre -
Question 28 of 30
28. Question
According to the FATF, which of the following identify, assess, and understand the money laundering and terrorist financing risk in a risk-based approach?
I. The Countries
II. The Banks
III. The Competent authorities
IV. United Nation OrganisationCorrect
According to the FATF, which of the following identify, assess, and understand the money laundering and terrorist financing risk in a risk-based approach:-
(A) The Countries
(B) The Banks
(C) The Competent authoritiesIncorrect
According to the FATF, which of the following identify, assess, and understand the money laundering and terrorist financing risk in a risk-based approach:-
(A) The Countries
(B) The Banks
(C) The Competent authorities -
Question 29 of 30
29. Question
According to the FATF, what do you mean by peer to peer?
I. A network of personal computers, each of which acts as client so that each can exchange files and email directly with every other computer on the network.
II. A network of personal computers, each of which acts as Server so that each can exchange files and email directly with every other computer on the network
III. A network of personal computers, each of which acts as client so that each can exchange files and email indirectly with every other computer on the network
IV. A network of personal computers, each of which acts as server that each can exchange files and email indirectly with every other computer on the networkCorrect
According to the FATF, Peer to Peer (P2P) is a network of personal computers, each of which acts as both client and sever, so that each can exchange files and email directly with every other computer on the network.
Incorrect
According to the FATF, Peer to Peer (P2P) is a network of personal computers, each of which acts as both client and sever, so that each can exchange files and email directly with every other computer on the network.
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Question 30 of 30
30. Question
According to the FATF, what are the architectures of p2p networks?
I. P2P architecture consists of a decentralised network of peers-nodes that are servers.
II. P2P architecture consists of a decentralised network of peers-nodes that are clients.
III. P2P architecture consists of a centralised network of peers-nodes that are servers.
IV. P2P architecture consists of a centralised network of peers-nodes that are clients.Correct
According to the FATF, Peer to Peer (P2P) is a network of personal computers, each of which acts as both client and sever, so that each can exchange files and email directly with every other computer on the network. A peer-to-peer (P2P) architecture consists of a decentralised network of peers or nodes that are both clients and servers. P2P networks distribute the workload between peers, and all peers contribute and consume resources within the network without the need for a centralised server.
Incorrect
According to the FATF, Peer to Peer (P2P) is a network of personal computers, each of which acts as both client and sever, so that each can exchange files and email directly with every other computer on the network. A peer-to-peer (P2P) architecture consists of a decentralised network of peers or nodes that are both clients and servers. P2P networks distribute the workload between peers, and all peers contribute and consume resources within the network without the need for a centralised server.