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| Section | Objectives |
|---|---|
| Investment and Financial Markets | - Market participants and their roles - Structure of financial markets - Asset classes and investment products |
| Investment Products and Suitability | - Equities, bonds, and collective investments - Suitability and client profiling - Taxation and charges overview |
| Regulation and Ethics | - Ethical standards in investment advice - Conduct of business and compliance principles - Regulatory environment in financial services |
| Wealth Management Principles | - Portfolio construction basics - Client investment needs and objectives - Risk and return concepts |
1. One advantage of an occupational pension scheme OPS is that:
A) The employee sets up the scheme and chooses the investments
B) The employer contributes to the overall cost
C) The employee knows the level of retirement income
D) Contributions and withdrawals are tax free
2. Which of the following elements would be included in a recommendation report to a client?
A) Inflation rate
B) Protection
C) Previous arrangements
D) Interest rate
3. How does a negative interest rate policy (NIRP) aim to boost lending?
A) Consumers are paid to borrow money
B) By penalising banks for holding surplus cash
C) Interest is not charged on loans
D) By discounting the interest rate charged on loans
4. To minimise risk and maximise diversification, a portfolio should hold securities with:
A) Positive correlation and high standard deviation
B) Positive correlation and low standard deviation
C) Negative correlation and low standard deviation
D) Negative correlation and high standard deviation
5. What type of funds are exchange traded commodities ETCs?
A) Open ended
B) Closed ended
C) Alternative investment funds
D) Investment trusts
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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