A rise in living standards will tend to:

A. Reduce the demand for commodities

B. Have no effect on commodities

C. Increase government participation in the commodities markets

D. Create an increased demand for commodities

Back-end loading is often associated with:

A. Bonds

B. Collective investments

C. Equities

D. Real estate

How do imports and exports affect the Gross Domestic Product (GDP) calculation?

A. Imports and exports are ignored as they only affect Gross National Product (GNP)

B. Exports are added and imports are ignored

C. Imports are subtracted and exports are added

D. Imports are added and exports are subtracted

Which of the following will be a major constraint on a client’s ability to invest and protect against all of the risks that might arise?

A. Age

B. Affordability

C. Risk aversion

D. Tax implications

A market which employs an electronic order book to match buyers with sellers in strict order by price is known as:

A. Order-driven

B. Quote-driven

C. On-exchange

D. On-exchange

Which currency is most heavily traded on international markets?

A. British pound sterling

B. US dollar

C. Japanese yen

D. Euro

How does ‘relief at source’ normally operate in relation to overseas dividend income?

A. A reduced rate of withholding tax is levied

B. A tax rebate is paid in cash

C. A credit is applied against a separate tax liability

D. A staggering of the tax levy is granted

The management of investment portfolios of collective investment schemes, pension funds, insurance funds, hedge funds, and private equity would normally be considered to fall into the scope of:

A. The retail financial sector

B. The wholesale financial sector

C. Family offices

D. Private banking

Which index tracking method requires a swap agreement?

A. Full replication

B. Stratified Sampling

C. Synthetic Replication

D. Optimisation

If a hedge fund is engaging in equity arbitrage, it is likely that they are pursuing:

A. An absolute return strategy

B. A market-neutral strategy

C. An event-driven strategy

D. A non-directional strategy

A bullet bond portfolio can have an advantage over a barbell bond portfolio because:

A. It is always riding the yield curve

B. It only invests in short-dated bonds

C. The gross redemption yield is always higher

D. A bullet portfolio does not require regular rebalancing

A firm acting as agent makes money by:

A. Profiting from the spread

B. Providing advice

C. Charging their client a commission

D. Trading against its own order book