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IIA-CFSA Exam Dumps - Certified Financial Services Auditor

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Question # 57

The accounting standards in the United State are:

A.

Generally accepted accounting principles

B.

U.S. Generally accepted accounting principles

C.

IFRS Standards

D.

None of these

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Question # 58

The tax implications are to be considered in case of life insurance. As, you can take out in chunks to supplement the income, and minimize tax burden, while keeping the majority still under the tax differed status (Not to mention the benefit of Roth IRA).So, the end result of what you have is for disposable income is once again better with the:

A.

401K

B.

Whole life Insurance

C.

Term life Insurance

D.

None of these

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Question # 59

Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predicated by the normal distribution assumption); BECAUSE:

A.

Correlation between market movement can vary (especially during periods of stress in themarket)

B.

The changes in present values are not perfectly linearly related to changes market rates.

C.

The use of one day horizon does not fully capture the market risk of positions that cannot be liquidated in one day.

D.

All of these

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Question # 60

A __________ is a health insurance plan where medical treatment is fully covered if provided by doctor or a hospital belonging to PPO’S network of health care providers.

A.

Permanently preferred organization

B.

Preferred provider organization

C.

Health insurance organization

D.

Health insurance from health maintenance organizations

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Question # 61

Some of the risks associated with bond funds are all of the following EXCEPT:

A.

Credit Risk

B.

Interest Rate Risk

C.

Payment Risk

D.

Liquidity Risk

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Question # 62

Which of the following statements about the over-the-counter market is false?

A.

Mutual funds and other new issues are initially issued over the counter

B.

Security prices are determined through auction bidding

C.

Broker dealers must be resigned

D.

Securities are traded at many locations throughout the country

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Question # 63

One fund may invest on mostly established “blue chip” (Companies that pay regular dividends). Another fund may invest in newer technology companies that pay no dividends but that may have more potential for growth. These are the examples of:

A.

Mutual funds

B.

Index funds

C.

Stock funds

D.

Bond funds

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Question # 64

The time that a new group member must wait before becoming eligible to enroll in a group insurance plan is known as the:

A.

Actively-at-work provision

B.

Probationary period

C.

Eligible period

D.

Enrollment period

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