來源:高頓網校 發布時間:2018-11-15 11:51 責編:Hexinxin

  1. Which of the following is TRUE in relation to affirmative covenants?
 
  A.      They prohibit the borrower from issuing new debt.
 
  B.       They prohibit the borrower from paying dividends above a limit to shareholders.
 
  C.       They require the borrower to take actions to service the debt and maintain collateral.
 
  D.      They prohibit the borrower from paying dividends under certain circumstances to  shareholders
 
  2. Suppose that you need to borrow $1 million for 24 months. Two large US-based international banks with equal credit ratings offer deposit rates of 2%. To choose between the two banks, you would need all of the following except:
 
  A.      day count basis.
 
  B.       compounding basis.
 
  C.       currency of deposit.
 
  D.      balance sheets of the banks.
 
  3. An analyst wants to test whether the variance of return from telecom stocks is higher than 0.04. For this purpose, he obtains the following data from a sample of 51 telecom stocks. Mean return from telecom stocks = 15% Standard deviation of return from telecom stocks = 24% Mean return from market = 12% Standard deviation of return from market = 13% Based on this information and a 0.05 significance level:
 
  A.      we can say that the variance of telecom firms is lower than 0.04.
 
  B.       we can say that the variance of telecom firms is higher than 0.04.
 
  C.       we cannot say that the variance of telecom firms is lower than 0.04.
 
  D.      none of the above.
 
  4. Which of the following internal controls does NOT effectively reduce operational risk?
 
  A.    Separation of trading from accounting and data entry
 
  B.     Automated reminders of payments required and contract expirations
 
  C.     A multitude of users can modify trade tickets so that errors may be quickly corrected
 
  D.    Reconciling results from different systems to ensure data integrity
 
  5. It would be prudent for a trader to direct accounting entries in the following situation:
 
  A.      Never.
 
  B.       when senior management of the firm and the Board of Directors are aware and have approved such on an exception basis.
 
  C.       when audit controls are such that the entries are reviewed on a regular basis to ensure detection of irregularities.
 
  D.      solely during such times as staffing turnover requires the trader to back-fill until additional personnel can be hired and trained.
 
  Answer:
 
  1. Correct answer: C
 
  Affirmative covenants are terms that require the borrower to take actions to service the debt and maintain collateral.
 
  2. Correct answer: D
 
  $1 million is a relatively small amount and the liquidity risk is not high in most markets. All other factors are crucial for the decision.
 
  3. Correct answer: B
 
  Tests of the variance of a population require the chi-squared test. For this data, chi-squared = (n - 1) x Sample variance / Hypothesized variance = 50 x 0.24^2 / 0.04 = 72. Since the analyst wants to show that the variance is more than 0.04, this will be chosen as the alternative hypothesis and the null hypothesis will be that the variance is lower than or equal to 0.04. The critical value of the chi-squared statistic (for df=50 and p=0.05) is 67.505. Since the test statistic is higher than the critical statistic, we can reject the null hypothesis (variance <= and="" accept="" the="" alternative="" hypothesis="" variance=""> 0.04).
 
  4. Answer: C
 
  Proper practice limits the amount of people who can change trade tickets and what information can be changed once a ticket is written.  Double checking work, separating duties, and automatic reminders all help lower operational risk.
 
  5. Answer: A
 
  In accordance with the separation of duties principle, it would never be appropriate for a trader to direct the accounting entries.

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