IIA-CFSA Exam Questions

Which of the following best suits in place of question mark?

Interest rate risk arises from differences between the timing of rate changes and the timing of cash flows ( _________ );from changing rate relationships among different yield curv...

In a price risk situation if customers withdraw their applications a bank may be unable to originate enough loans to meet its forward sales commitments .Because of this kind of "Fa...

Compliance risk can lead t[o all of the following situations EXCEPT:

Selectively increasing the price of a mortgages loan above the bank's established rate to certain customers ("overages") may have the effect of discriminating against those custome...

Strategic Risk if not properly controlled, understood or measured may result in:

To limit strategic risk management should ensure proper balance between the:

In order to avoid reputation risk; e.g. a bank that originates and sells loans into the secondary market should follow ______________ to protect its reputation in the market to sup...

When a bank charges off a loan as a loss, it reduces an account called the"_____________"

Under the principles of bank accounting, loans reported as non-performing have not yet been charged off as _____________.

Hospitals document reserves as that portion of the accounts receivables that they hope to collect but have some doubt about its collectability. Rather than book these amounts as in...

To the extent that the hedged relationship ceases to be effective, the hedging instrument's gains/losses should be transferred from the reserve and recognized in:

The process of purchasing all or any part of anew issue of municipal securities form the issuer and offering such securities for sale to investors is called:

For refinancing home and mortgage loans for example, the underwriter may request additional documentation such as:

Once the underwriter has reviewed all of the file documentation provided, he or she will be issued a written decision .The decision may be one of the following:

"A negotiated offering in which a new issue of municipal securities is sold on an agency basis by a placement agent directly to institutional or private investors rather than throu...

Regulation D, an SEC rule governing the limited offer and sale of securities without registration under the securities Act of 1933, regulates private placement exemptions. Regulati...

Underwriting decisions are more influenced by what underwriters think they can sell to the public than _____________.

The term used to describe the process of raising funds through the sale of securities is called:

Recent turmoil in the financial markets illustrate the volatility of the secondary market for subprime loans and the significant liquidity risk incurred when originating a large vo...

IF a securitization transaction meets FAS 125 sale or servicing criteria, the seller must recognize any gain or loss on the sale of the pool immediately and carry any retained inte...

______________ includes provision provided by issuers to reduce risk in CMBS in a securitized process.

A special servicer is the servicer who assumes servicing responsibilities when a loan goes into default and conducts the work-out "or foreclosure process. There are various scenari...

Most certificates are held by the depository trust company as custodians for the trustee for the benefit of the certificate holders, and the notice of book entry is made to the cer...

Which of the following should be the next step after the structuring process in order to complete the securitization process?

Some organizations will strive to simply with the law; others will use the Act as an opportunity to further promote treasury best practices. Specific areas of opportunity include a...

Initially, back-office operation were created as captives of parent companies and treated as cost centers from cost centers to profit centers due to:

Back-office operations are _____________ as offshore operations which establish business entities in tax-free export zones or offshore centers.

I- Loan Processing II- Claims Processing III- Applicating IV- Credit and Collection V- Reconciliations VI- Account Payments VIII- Time and Expense Reimbursement IX- Vendor Payments...

Agents that represent one company exclusively are called:

Examples of illegal sales practices may be:

Commonly used distribution system/s in the insurance industry is/are:

Which one of the following questions is NOT considered when claims department review the claims?

__________ agency system uses agents who sell the policies of a group of affiliated companies.

Insurance companies decide on a _________ whether an investigation is necessary

Insurance products yield _________ compared to regular investment option and this is besides the added incentives (read bonuses) offered by insurers.

In effect to protect customers from unsubstantiated or undocumented losses. NASD has some specific rules. The rules include:

Federal Reserve's duties fall into following general areas EXCEPT:

The federal open market committee (FOMC) board sets reserve requirements and shares the responsibility with the reserve banks for:

An area of FOMC board responsibilities is the development and administration of regulation that implement major federal laws governing consumer credit, such as:

The Federal Reserve System interacts with foreign central banks include:

The European Central Bank is the central bank for the Europe's single currency, the EURO. The ECB's main task is to maintain the EURO's:

How many member states of the European Union are participating in the single Euro Currency?

The primary objective/s of ECB is/are:

ECB performs all these tasks EXCEPT:

Insurance industry is regulated by:

The primary component of the McCarran-Ferguson Act is/are:

Which of the following is/ are the responsibility /ies of state insurance commission:

Issuance of licenses to insurance agents is one of the responsibilities of:

The mission of the NAIC is to assist State Insurance regulators, individually and collectively, in serving the public interest and achieving all the following fundamental insurance...