Question 1

Which of the following is the right to sell?

Options :

A : System option

B : Strategic option

C : Call option

D : Put option

Answer: D

Question 2

If the following are balance sheet changes: $5,005 decrease in accounts receivable $7,000 decrease in cash $12,012 decrease in notes payable $10,001 increase in accounts payablea "use" of funds would be the:

Options :

A : $7,000 decrease in cash

B : $5,005 decrease in accounts receivable

C : $10,001 increase in accounts payable

D : . $12,012 decrease in notes payable

Answer: D

Question 3

Which of the following is defined as the rate of return anticipated on a bond if it is held until the maturity date?

Options :

A : Discount rate

B : Interest free rate

C : Return on equity

D : Yield to maturity

Answer: D

Question 4

Which of the following is not a standard method of transferring funds when using concentration banking?

Options :

A : Depository transfer check

B : Automated clearinghouse electronic transfer

C : Wire transfer

D : Payable through draft (PTD)

Answer: D

Question 5

Stephen is about to commence taking benefits from his personal pension scheme, which includes protected rights. He should be aware that:

Options :

A : He can take up to 25% of the total fund as a pension commencement lump sum

B : He has the right to exercise the open market option

C : His whole pension fund must provide limited price indexation in payment

D : The value of the protected rights element will not count towards the lifetime allowance

Answer: A,B

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