Use CISI ICWIM Dumps To Succeed Instantly in ICWIM Exam [Q102-Q121]

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Use CISI ICWIM Dumps To Succeed Instantly in ICWIM Exam

Ultimate Guide to ICWIM Dumps – Enhance Your Future Career Now

NO.102 What is the role of a central counterparty (CCP)?

The CCP guarantees that the counterparties will not default

It interposes itself between the counterparties to a trade, becoming the buyer to every seller and the seller to every buyer

To act as a market maker between counterparties

To provide funding to counterparties as and when required

NO.103 Which of the following is categorised as a soft commodity?

Copper

Oil

Lumber

Natural gas

NO.104 Your client estimates that they will require £50,000 of income annually to live off when they retire. Personal plus state pension will provide £40,000. They wish to retire in 25 years’ time. It is estimated that they can earn 5% per annum, and inflation has been forecast at 2%. Interest rates are currently 1.5%. Allowing for inflation, what lump sum would they need to accrue to supplement their pension?

£252,401

£328,120

£468,745

£546,869

NO.105 A company recently increased its earnings per share figure by 10%. This means that the company’s:

Share base has widened

Ability to pay dividends has improved

Market share has risen

P/E ratio has increased

NO.106 Which type of corporate action can only occur if a resolution is passed to forgo pre-emption rights?

Placing

Share buyback

Stock split

Warrant exercise

NO.107 Assuming an upward-sloping yield curve that does not change, how can a fund manager profit from buying a longer-dated bond?

The yield will fall as the bond gets closer to maturity, so the bond can be sold for a profit

As time passes, the yield and price of the purchased bond will rise

The gross redemption yield will rise on the purchased bond as maturity nears

The yield will rise as the bond gets closer to maturity, so the bond can be sold for a profit

NO.108 Which of the following elements would be included in a recommendation report to a client?

Inflation rate

Interest rate

Protection

Previous arrangements

NO.109 Having prepared recommendations via a report, why would an adviser suggest a face-to-face meeting with their client?

In order to collect fees prior to implementation of the recommendations

To establish the client’s tax position

So that the client can review the adviser’s qualifications

To afford the opportunity to clear up any misunderstandings

NO.110 Which of these banks are likely to have relatively few legacy issues?

Central bank

Challenger bank

Online bank

Retail bank

NO.111 Ex-ante security attribution seeks to identify:

Portfolio outperformance

Why the portfolio performed the way it did

An appropriate benchmark

Future risks

NO.112 When analysing rates of return, why is a short-dated government bond considered to be the risk-free rate?

Governments are considered unlikely to default

Investors can buy short-dated government bonds without risk

Government bonds are free from all types of risk

There is no tracking error when measuring the performance of government bonds

NO.113 In what circumstances would a central bank use its foreign reserves in currency markets?

To lower the rate of inflation

To control the money supply

To influence the nation’s currency

When influencing the short-term interest rate

NO.114 What financial principle requires an adviser to gather extensive information from a client before making a recommendation?

Disclosure

Transparency of trading

Risk reduction

Know Your Customer

NO.115 A defined benefit pension scheme gives an employee the advantage of:

Not having to make any contributions

Being index-linked to inflation

Knowing what income will be received in retirement

Consistently better investment performance

NO.116 A stockbroking firm receives buy and sell orders for the same security from different clients. How can they best avoid a conflict of interest?

Withdraw their services for the transaction

Place orders as they are received from the clients

Openly disclose all orders received to the clients

Process the sell orders before the buy orders

NO.117 The Financial Action Task Force (FATF) was created to:

Improve financial regulation in G7 member states

Support countries in developing their financial regulation

Support international efforts to end safe havens for corrupt funds

Combat international money laundering and international terrorism

NO.118 If someone in a fiduciary position has personal or professional interests that compete with their duty to act in the client’s best interest, this is called:

Discretionary management

A regulatory breach

Full disclosure

A conflict of interest

NO.119 When a UK-based investor receives overseas equity dividend income, which one of the following types of tax may have been deducted?

Stamp Duty

Withholding Tax

Value Added Tax

UK Corporation Tax

NO.120 What is a key feature of offshore trusts that can make them attractive to wealthy UK clients?

They are not publicly registered

The offshore trust is only liable for local taxes

The beneficiaries never have to pay inheritance tax

The offshore trust is usually a less complex product to understand

NO.121 Measures of Central Tendency include a method whereby a set of numbers are multiplied and then the nth root of the resulting product is taken. This is known as the:

Arithmetic mean

Geometric mean

Mode

Median