Which one of the following is/are NOT the type of retirement plans that banks may administer?

A. Pension plans

B. Self-employed retirements trust

C. Group retirement accounts

D. Post-requirement accounts

If participation rate in an equity indexed entity is 80% and the index increases 9%, the return credited to the annuity would be:

A. 7.1%

B. 7.2%

C. 7.25%

D. 7.3%

___________ are a type of mutual funds that is required by law to invest in highly liquid and low-risk securities such as certificates of deposits or government securities. These funds pay dividends that generally reflect short-term interest rates and are not federally insured. Due to low-risk nature of the investments, these funds rarely lose money.

A. Money market funds

B. Trust funds

C. Collateral funds

D. Index funds

All members of a group insurance plan (group insureds) are covered under a single contract, known as a master group insurance contract. The employer or entity purchasing the group insurance is known as group policyholder. In _____________, group insureds do not pay any premium for the coverage.

A. Noncontributory plan

B. Contributory plan

C. Life insurance

D. Preexisting provision condition

____________insurance provides a specified benefit amount in either of the following cases: If the insured survives to the maturity date of the policy is reached. If the insured dies before the maturity date of the policy is reached.

A. General life insurance

B. Whole life insurance

C. Endowment insurance

D. Term life insurance

Banks provide the following personal trust services for individuals EXCEPT:

A. Trust Development

B. Serves as Co-fiduciary

C. Serve as Agent and guardian of Estates

D. None of these

An entity that purchases and sells securities on its own behalf is acting as:

A. A broker

B. A dealer

C. An agent

D. A principal

Customer accounts:

Ensure that the firm is exercising due diligence in the opening and supervision of customer accounts. The procedures should be formalized in writing and in accordance with the rules and regulations of the appropriate regulatory authority.

Ensure that daily customer positions and option exercises are in accordance with the limits established by the appropriate exchange. Verify that commissions generated by customer trades are properly calculated and posted to the general ledger.

A. This is one of the primary audit objectives of stock and options

B. This is one of the primary audit objectives of swaps

C. This is one of the primary audit objectives of bonds

D. None of these

The approximate per-share NAV plus any fees the fund imposes is the price:

A. That investors pay to purchase mutual fund

B. That investors receive on redemptions

C. Per share NAV

D. All of these

Close-end funds are traded on:

A. A primary market

B. Secondary market

C. Tertiary market

D. Are not traded anywhere