CFMAS Module 5 Mock Exam 4

Mock Exam 4
C7/2.1.2
1. An insurer does not need to apply to MAS for approval on which of the new product they are
thinking of launching?

A. Term Policy with duration of less than 3 years and comparing to the existing policy of 10
years.
B. Single Premium Endowment Plan with duration of less than 2 years and comparing to
the existing policy of 5 years.
C. Regular Premium Term Policy with duration of 10 years and comparing to the existing
policy of 5 years.
D. ILP Policy with duration of less than 5 years and comparing to existing policy of less than
5 years.

C11/2.2.2
2. What is the name of the fund that the government had set up to help needy Singapore citizens
pay for medical expenses?

A. Medisave
B. Medishield
C. Medifund
D. Eldershield

C6/11.11
3. What kind of Customer Due Diligence (CDD) do financial advisers have to adopt when dealing
with customers, where information on them is publicly available?

A. Normal CDD.
B. Simplified CDD
C. Enhanced CDD
D. CDD by intermediaries

C12/T12.2
4. John wants to buy a landed property and a policy with a life cover that can provides a return
15 years later to pay for the property down payment. Which is the most suitable policy?

Capital Risk : High

Profile Risk : High

A. Unit Trust
B. Whole Life Insurance Policies
C. Annuities
D. Universal Life Insurance

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CFMAS Module 5 Mock Exam 4

C5/6.5
5. Which disciplinary action taken by a financial adviser is false, in respect of any misconduct
committed by its representatives?

A. Demotion
B. Fine
C. Revoke licence
D. Termination of service

C1/2.2
6. Which of the following is NOT one of the Tenets of Effective Regulation?

A. Shared Responsibility
B. Risk Appropriate
C. Impact Sensitive
D. Open and Honest

C8/8.1
7. Which of the following is NOT considered a High Net Worth Individual?

A. Has a bank deposit of S$2m.

B. Has net personal assets exceeding S$1m.
C. Has a current income of more than S$400,000.
D. Has life policies of more than S$1m.

C5/6.2
8. When a financial adviser has not concluded its investigation or has not taken any disciplinary
action against the representative concerned, the financial adviser_____________.

A. need not submit any report to MAS.

B. should submit the Misconduct Report
C. should submit the Suspicious Report
D. should submit the Update Report

C5/6.5
9. A financial adviser is responsible for the conduct of its representatives; hence it should take
appropriate disciplinary action to ensure ____________ in its application of disciplinary
action.

A. fairness
B. leniency
C. competency
D. consistency

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CFMAS Module 5 Mock Exam 4

C4/App 4B
10. When the financial adviser discloses information on the past performance of a Collective
Investment Scheme (CIS) to its clients, the disclosure shall state the return on the Scheme,
calculated on a ___________basis.

A. Offer to Offer
B. Bid to Offer
C. Offer to Bid
D. Bid to Bid

C2/2
11. What is the purpose of Financial Advisers Regulation (FAR)? It provides:

A. exemptions from requirements relating to licensing.

B. approval or registration requirements relating to licensing.
C. revocation or variation of any condition or restriction under FAA.
D. All of the above

C2/2
12. Define Financial Advisers Regulation (FAR)?

A. Codes
B. Subsidiary Legislation
C. Directions
D. Acts

C2/6.3
13. Which of the following is a definition of “Accredited Investor”?

A. An individual whose income is not less than S$300,000 in the preceding 12 months.
B. An individual whose income is more than S$300,000 in the preceding 12 months.
C. An individual whose net personal assets exceed S$1m.
D. An individual whose net personal assets are not more than S$2m.

C2/6
14. Exempt Fund Managers under Third Schedule of the FAA are exempted from holding a
financial adviser’s licence, can serve up to how many investors?

A. 20
B. 30
C. 40
D. 50

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C2/5
15. Which form should the financial adviser used in applying to MAS for the grant of a financial
adviser’s licence?

A. Form 1
B. Form 3A
C. Form 3B
D. Form 11

C2/10.3
16. What are the age criteria for Appointed Representative and Provisional Representative?

A. Age 18 and 21 respectively

B. Age 21 and 25 respectively
C. Age 18 for both
D. Age 21 for both

C2/16
17. Contravention for the Appointed or Provisional Representatives for making false and
misleading statement is ________________.

A. Fine not exceeding S$25,000

B. Fine not exceeding S$50,000
C. Fine not exceeding S$75,000
D. Fine not exceeding S$100,000

C3/12
18. Which position in a company requires licensed financial advisers to seek MAS’s approval?

A. Director of a foreign company

B. Chief Executive Officer
C. President Secretary
D. Committee of Management

C9/4.3.2
19. Which of the following activities is considered Back End Monitoring Procedures with regard
to monitoring of switching of designated investment products?

A. Tracking the volume of switches

B. Whether client suffers any penalty for terminating the original product
C. Client’s decision to make switches
D. Representative asks client to switch

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C5/7
20. Notice on cancellation period for unlisted debentures does not apply to unlisted debentures
with tenures of _____________ or shorter.

A. 1 month
B. 2 month
C. 3 month
D. 4 month

C6/6.1
21. “Prominent Public Functions” includes roles held by a head of state, head of government, and
senior executives of state owned corporations. This definition describes who under Customer
Due Diligence?

A. Politically Exposed Persons

B. Politically Dangerous Persons
C. Politically Balanced Persons
D. Politically Powerful Persons

C6/11.15
22. A customer is reluctant and unwilling to provide any information requested by the financial
adviser and decides to withdraw a pending transaction. What report should the financial
adviser raise?

A. Misconduct Report
B. Police Report
C. Suspicious Transaction Report
D. Pending Transaction Report

C6/11.2.2
23. Terrorists require funds to carry out acts of terrorism and their sources of terrorist financing
may be ___________and ____________.

A. legitimate and complex

B. illegitimate and large
C. complex and large
D. legitimate and illegitimate

C7/3.3
24. Audit of an ILP sub fund using the second method; audit on the internal control and process, is
to be completed not later than ___________ after ILP sub fund’s year end.

A. 1 month
B. 2 months
C 3 months
D. 4 months

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C7/4.18
25. Calculate number of units in an ILP sub fund given:
Net asset value = S$122m
Price per unit = $1.22

A. 1 million
B. 10 million
C. 100 million
D. 149 million

C7/App Ha
26. What is the review period for Product Highlights Sheet issued by the Insurer for ILP sub-
funds?

A. 7 days
B. 14 days
C. 21 days
D. 30 days

C7/App H(9)
27. An insurer shall refrain from including _______________in a Product Highlights Sheet?

A. diagrams
B. glossary
C. disclaimers
D. technical terms

C8App H
28. The Product Highlights Sheet should not be longer than ____________, excluding glossary.

A. 4 pages
B. 6 pages
C. 8 pages
D. 10 pages

C8/3.1.2
29. The MAS’s assessment on the criteria of Fit and Proper is _____________________.

A competency and confidence

B. confidence and capability
C. competency and capability
D. competency and compliance

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C8/4.2
30. Financial institutions to perform due diligence checks on their representatives in the following
areas except:

A. Representative’s identity
B. Representative’s financial status
C. Representative’s marital status
D. Representative’s past records

C8/6.2.1
31. The MAS considers that a financial adviser can use the word “Independent” if :

A. it does not receive any commission.

B. it is associated with a product provider.
C. if the financial adviser itself is a product provider.
D. it operates free from any direct or indirect product restriction.

C8/6.5
32. Who is allowed to promote its services as being “Independent”?

A. Bank
B. Fund Management Company
C. Life Insurer
D. Licensed Financial Adviser

C8/6.3.3(d)
33. The MAS will consider commission or benefits to be significant if commission from a product
provider constitutes more than __________of the financial adviser’s total revenue.

A. 10%
B. 20%
C. 30%
D. 40%

C9/3.7 & 3.8

34. Who is not allowed in the marketing or offering of any recommendation in relation to
structured deposit?

A. Financial Adviser
B. Representative
C. Road Show
D. Bank Tellers

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CFMAS Module 5 Mock Exam 4

C4/App 4B
35. When comparing the performance of a CIS with that of other forms of investment, such other
forms of investment shall have a risk profile which is __________________ to that of the
scheme.

A. comparable
B. identical
C. similar
D. different

C9/5.1
36. What is the rationale of Fair Dealing Outcome One under Board and Senior Responsibilities
Guideline No: FAA-G11?

A. Customers should be recommended suitable products.

B. Customers to be serviced by competent representatives.
C. Customers to receive clear and timely information to make informed decisions.
D. Customers to have confidence when dealing with company where fair dealing is
central to the corporate culture.

C12/6.1.2 (a)
37. Which method is used for quantifying retirement needs?

A. Expense Method
B. Multiple Approach
C. Needs Approach
D. Accumulation Needs Method

C9/5.5
38. Which of the following is NOT associated with Fair Dealing Outcome Five?

A. Every complainant must be given an opportunity to state his complaints.

B. The assessment outcome for each complaint should be properly documented.
C. Compliance Report should be submitted by staff handling complaints.
D. Financial Institution should work with complainant to ensure a fair assessment of the
complaint.

C11/2.1.2(b)
39. John is thinking of participating in CPF LIFE plans, allowed under CPF Minimum Sum
Scheme. How many plans are available?

A. 3
B. 4
C. 5
D. 6

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C4/3.5

40. In which way(s) can a financial adviser be remunerated?

A. Soft commission
B. Trailer commission
C. Commission from product provider
D. All of the above

C10/1
41. The Revised Code on Collective Investment Schemes is obtained from_____________.

A. Monetary Authority of Singapore

B. Association of Banks in Singapore
C. Life Insurance Association of Singapore
D. Association of Financial Advisers

C5/5.1.3
42. In order for the financial advisers to advise on Investment Linked Insurance Policies, they
must pass CMFAS Module 5 and CMFAS ___________.

A. Module 8A
B. Module 9A
C. Module 6A
D. Module 8

C8/2.1.1
43. Under FAA, the financial adviser must employ minimally how many representatives in order
for a licence to be granted?

A. 2
B. 3
C. 4
D. 5

C8/6.5
44. The term “independent” shall be used by financial adviser if they could demonstrate there is
no material or commercial link with ________________.

A. investors
B. product providers
C. financial legislators
D. government bodies

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C8/2.1.1

45. A financial adviser’s licence would be granted to a ____________, who has established a
physical presence in Singapore.

A. sole proprietorship
B. corporation
C. natural person
D. partnership

C6/11.15
46. When a financial adviser by any circumstances found a suspicious transaction through
customer due diligence, he should write a/an ________report.

A. anti – terrorist
B. risk transactions
C. anti-money laundering
D. suspicious transaction

C8/4.4
47. In which area(s) should financial institutions ensure there is no conflict(s) of interest for their
representatives to discharge the fair dealing responsibilities?

A. Personal circumstances
B. Working with connected persons
C. Work arrangements within the corporation
D. All of the above

C1/3.1
48. Which appropriately describes Singapore Exchange Limited (SCX)?

A. First integrated and derivative exchange in the world.

B. Wholly owned by Singapore government.
C. First fully electronic and floorless exchange in Asia.
D. It is a merger of Stock Exchange of Singapore and Derivative Trading Limited.

C2/4.5
49. What type of investment product comes under the ambit of the Financial Advisers Act?

A. investment related
B. consumption based product
C. low end risk spectrum product
D. loan and mortgages

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C2/5
50. What is/are the requirement(s) for The Monetary Authority of Singapore to consider, in
granting a financial adviser its licence?

A. Financial soundness
B. Fitness and propriety
C. Business plans and projections
D. All of the above

C8/6
51. Regulation 21, Guideline No. FAA-G05 is to give guidance to financial adviser on the area of
being:

A. Fit and proper

B. Honest
C. Independent
D. Competent

C2/10.1
52. How many principal(s) can a representative represents unless approved by MAS?

A. 1
B. 2
C. 3
D. 5

C5/4.1
53. Mary wants to apply to be a provisional representative, which is NOT a criteria she has to
observe?

A. Must be 21 years of age.

B. Must have at least 2 years of relevant working experience.
C. Must already have been relocated in Singapore.
D. Must have a degree.

C2/11.1
54. Which of the following is NOT true of an appointed representative providing financial
advisory services?

A. Satisfy examination requirements.

B. Name must be entered in the register of Association of Financial Advisers.
C. Status of the representative must not been revoked.
D. Its principal is licensed to provide that type of financial advisory services.

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C2/14.3
55. A principal who submits a certificate shall keep copies of all information and documents for a
period of ____________from the date of lodgment with MAS under the Notification Procedure.

A. 3 years
B. 4 years
C. 5 years
D. 6 years

C6/6.1
56. What kind of Customer Due Diligence (CDD) should be performed on a natural person
entrusted with prominent public functions?

A. Simplified CDD
B. Enhanced CDD
C. Political Exposed Persons
D. Face to Face verification

C3/ 15.2
57. What is the penalty for a licensed financial adviser who employs a person, who is served
with a prohibition order to provide financial advisory services?

A. Fine not exceeding $25,000

B. Fine not exceeding $50,000
C. Fine not exceeding $25,000 or imprisonment for a term not exceeding 12 months or
both.
D. Fine not exceeding $50, 000 or imprisonment for a term not exceeding 2 years or
both.

C12/3
58. Which of the following is NOT included in the Stages of Needs Analysis?

A. Established and define client-representative relationship

B. Explain the benefits of needs analysis
C. Develop and present recommendations
D. Implement recommendations

C4/1.7
59. In considering whether a switch is detrimental, MAS will consider:

A. Client incurs transaction cost with no real gain

B. Replacement product confers a higher benefit at a lower cost
C. Replacement product is suitable for the client
D. Client suffers no penalty for the switch

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C4/3
60. To whom does the Notice on Information to Clients and Product Information Disclosure (Notice
No. FAA –N03) apply ?

A. Exempt Financial Advisers

B. Representative of Financial Advisers
C. Licensed Financial Advisers
D. All of the above

C6/11.8
61. As a guide, which of the following regarding Non-face-to-face verification is neither valid nor
recognized?

A. Telephone number from business card that we can call the company to verify.
B. Salary details on bank statements.
C. Identity verification details provided by customers’ parents.
D. Address verification by corresponding with the customer.

C3/10.3
62. A licensed financial adviser who contravenes “Conflict of Interest” section shall be guilty of
an offence. What is the imprisonment term?

A. 12 months
B. 2 years
C. 3 years
D. 5 years

C8/2.1.2(c)
63. In the case of an applicant whose CEO and EDs do not satisfy the requirement on minimum
years of track record, they should in the aggregate own not less than
_____________shareholdings of the applicant.

A. 20%
B. 30%
C. 40%
D. 50%

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C6/App 6A
64. What does not constitute to suspicious transactions?

A. Single Premium exceeding S$10,000.

B. Frequent change of address.
C. Use of an address that is not customer’s permanent address.
D. Frequent change to authorized signatories.

C8/2.1.1
65. Which of the following factors is NOT a criteria for the Chief Executive Officer (CEO) of an
applicant to consider when applying for a Financial Adviser’s licence?

A. Employs at least 2 full time appointed representatives.

B. CEO and its Executive Directors (EDs) must have minimum 10 years experience.
C. CEO is a resident in Singapore.
D. Whether CEO or EDs are placed in a position of conflict of interest.

C8/3.1.1
66. The criteria for considering whether a relevant person is fit and proper, implies that the
person is a person of honesty, ________________.

A. integrity and reputation

B. integrity and experience
C. integrity and efficiency
D. wealth and reputation

C12/3
67. Needs Analysis, a process needed to provide reasonable basis of recommendations, does
not include which stage?

A. Gather data, including goals

B. Implement recommendations
C. Review with client periodically
D. Explaining recommendations

C9/2.3
68. A dealer is expected to maintain proper records and keep such records for at least
_____________ years.

A. 3
B. 4
C. 5
D. 6

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C4/3.4.1
69. Financial adviser need not disclose what kind of information to its clients?

A. Remuneration
B. Telephone Number of Financial Adviser
C. Address of Financial Adviser’s representative
D. Type of financial advisory services that it is authorized to provide under FAA

C5/6.1
70. Under which situations does financial adviser need to report to MAS?

A. Representative forged client’s signature.

B. Representative won a lucky draw price in a shopping mall.
C. Representative fails to take continuing education provided by the Financial Adviser.
D. Representative change of address.

C9/4.3.1
71. Which of the following is considered Front End Monitoring Procedures for switching of
designated investment products?

A. Client declared in writing he has been advised by the representative to switch.

B. Check past transactions.
C. Track volume of switches.
D. Ensure supervisor supported switch, recommended by representative.

C11/2.1.1
72. What is the purpose of Minimum Sum Scheme (MSS)?

A. To allow CPF members to buy life annuities, beyond their minimum sum with their
withdrawal CPF savings from the specified withdrawal age.
B. To provide CPF members with a monthly income to support a modest standard of
living during his retirement.
C. To enable CPF members to enhance their retirement savings.
D. To provide CPF members with a monthly payout from the drawdown age, for as long
as he lives.

C11/2.1.1(a)
73. Who can be exempted from the CPF Minimum Sum Scheme?

A. CPF members who are pensioners.

B. CPF members who have purchased retirement policies from approved life insurance
companies.
C. CPF members who has taken part in the Minimum Sum Plus Scheme.
D. CPF members who have withdraw their CPF savings upon reaching specified
withdrawal age.

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C10/Illustration 2
74. XXX Equity Fund adopts the High Water Mark (“HWM”) arrangement for calculating its
performance fee. Calculate total fee at year 3, given the following:
Returns of XXX Equity Fund is 10%
Benchmark and hurdle is 2%
HWM is 1.4
NAV at year 3 is 1.5
Performance Fee and Management Fee is 20% and 10% respectively.

A. $0.02
B. $0.03
C. $0.04
D. $0.05

C11/2.3.1
75. CPF members using their CPF savings to service their housing loans under the Public
Housing Scheme is also covered by _________________.

A. CPF Board Lease Buyback Scheme

B. CPF Board Residential Property Scheme
C. CPF Board Dependant’s Protection Scheme
D. CPF Board Home Protection Scheme

C6/4.3.1
76. Which of the following is NOT needed by financial adviser for identification and verification
under Customer Due Diligence?

A. Nationality
B. Date of Birth
C. Educational Qualifications
D. Unique Identification Number

C2/2
77. Financial Advisers Regulations (FAR) is ________________.

A. enforceable by law
B. regulated by MAS
C. regulated by SGX regulations
D. regulated by Life Insurance Association of Singapore

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C8/2.1.2(c)
78. An applicant applying for a financial adviser’s licence should have a minimum of
__________ proven track record in the financial advisory business.

A. 2 years
B. 3 years
C. 4 years
D. 5 years

C6/11.2.2
79. Which is NOT true of Terrorist Financing?

A. May come from a legitimate source.

B. Always in small amount.
C. Methods to hide funds are the same as those used by criminal organizations.
D. Involve amounts that are not always large.

C11/2.2.5
80. Under CPF, which is a basic and affordable scheme that covers income and severe disability?

A. Medisave
B. Medifund
C. Eldershield
D. Medishield

C12/T12.2
81. Which policy is best suited for the objective of providing dependents that require a large sum
at the end of the term to cover cost and fees for critical illness?
Given:
Capital Risk: Low
Protection Needs: High

A. Universal Life Insurance Policies

B. Whole Life Insurance Policies
C. Term Insurance Policies
D. Endowment Insurance Policies

C5/5.1.4
82. MAS Notice 117, issued under the Insurance Act shall apply to representatives who provide
advice on what products?

A. Investment Linked Life Insurance Policies

B. Collective Investment Schemes
C. Specified Investment Products
D. Accident and Health Benefits Policy

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C12/5.3.6(d)
83. Married couples in Singapore with one retiree need about __________ of their pre-
retirement income to maintain the same living standard after retirement.

A. 40% to 50%
B. 50% to 60%
C. 60% to 70%
D. 70% to 80%

C11/2.3.1
84. When buying a resale flat in the open market, how much of the CPF savings may be used to
pay?

A. All of the savings in the Ordinary Account

B. Up to the market value
C. Up to the purchase price
D. Up to the valuation limit

C11/2.3.2
85. Which scheme from CPF is described as an additional monetization option to help unlock part
of member’s housing equity to provide a monthly stream of income for life?

A. CPF Life Scheme

B. Eldershield
C. Lease Buyback Scheme
D. CPF Minimum Sum Scheme

C11/3.4(c)
86. Participants of Supplementary Retirement Scheme (SRS), who withdraw their SRS savings
before statutory retirement age, _____________ of the withdrawals are taxable.

A. 5%
B. 7%
C. 50%
D. 100%

C6/6.1
87. With respect to Customer Due Diligence, which one of the following is NOT classified as
Politically Exposed Persons?

A. Cabinet Ministers
B. Senior Military Officer
C. Senior Executive of a state owned corporation
D. A Government Entity

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C12/5.3.3
88. How many more years of support should Jane provides for her daughter who is 3 years of
age?

A. 18 years
B. 19 years
C. 20 years
D. 22 years

C7/3.1(b)
89. Insurer has to notify MAS no later than _______________, regarding significant changes to
any ILP sub fund, before changes can take effect.

A. 7 days
B. 14 days
C. 21 days
D. 1 month

C4/1.7
90. A representative when advising a client on switching, which one of the following is NOT his
consideration?

A. Replacement policy suitability

B. Same level of benefits at a higher cost
C. Penalty for termination
D. Same level of benefits at a lower cost

C10/9.4
91. The expose to counterparty is lowered if collateral is used. What can be used as collateral?

A. Cash
B. Securitized debt instruments
C. Bonds with financial derivatives
D. Money market instruments with embedded financial derivatives

C9/5.1.5
92. Which of the following is NOT a monitoring strategy on the effectiveness and policies to
achieve the fair dealing outcomes by the Board and Senior Management?

A. Monitor customer surveys

B. Prepare compliance reports
C. Conduct mystery shopping exercises
D. Conduct training for industry representatives

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C9/5.7
93. Which supervisory or enforcement action by MAS is NOT true if financial institutions fail to
observe the guidelines on fair dealing?

A. via on site inspections or visits to financial institutions

B. via meetings with Boards and Senior Management
C. via customer surveys and mystery shopping exercise
D. via educating customers to help understand fair dealing

C9/5.7
94. Industry and Consumer Associations play a role in promoting the fair dealing outcomes.
They can do so in several ways except:

A. Educating consumers on understanding fair dealing initiatives.

B. Develop case studies.
C. Conduct customer surveys to identify areas on market conduct practices for
improvement
D. Develop performance evaluation and remuneration system to incentivize fair dealing
conduct.

C12/T12.2
95. John wants to buy an insurance policy to cover his own life for 5 years and to get a lump sum
after 5 years. What is most suitable?

A. Whole Life Insurance Policies

B. Endowment Insurance Policies
C. Term Insurance Policies
D. Annuities

C12/T12.2
96. Jan’s objective of investing in an investment product is to cover medical expense. Which is
the least suitable?
Given :
Risk Profile: low
Risk Tolerance: low

A. Medical Expense Insurance

B. Investment Linked Insurance Policies
C. Disability Income Insurance
D. Universal Life Insurance

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C12/T12.2
97. Peter wants to buy a car in 5 years time without having to take up a loan. Which of the
following least suits him?
Given:
Risk Profile: High
Risk of Capital Loss: High

A. Whole Life Insurance Policies

B. Endowment Insurance Policies
C. Term Insurance Policies
D. Investment Linked Policies

C11/2.1.2 (b)
98. The payout from which CPF Schemes is protected from members’ creditors?

A. CPF Investment Scheme – Ordinary Account

B. CPF Investment Scheme – Special Account
C. CPF Life Scheme
D. CPF Minimum Sum Scheme

C11/3.4d
99. What is NOT true of investments under CPF Investment Scheme (CPFIS) and
Supplementary Retirement Scheme (SRS)?

A. Both CPFIS and SRS can invest in insurance products.

B. SRS can invest in a wider range of financial assets including property investment
compared to CPFIS-OA & CPFIS-SA.
C. Both schemes have eligibility criteria.
D. SRS has a penalty for early withdrawal, but not CPFIS.

C11/2.4.1 & 3.4(d)

100. Which of the following is true of CPF Investment Scheme (CPFIS) and Supplementary
Retirement Scheme (SRS)?

A. SRS is voluntary but not CPFIS.

B. CPFIS profit can be withdrawn but not for SRS.
C. CPFIS and SRS withdrawals are tax free.
D. Both allowed Single Premium and Recurring Single Premium Insurance Products.

Prudential Assurance Company Singapore (Pte) Limited 21

For Internal Use Only. Based on 4th Edition Text (July 2012)
CFMAS Module 5 Mock Exam 4

Answers – Mock Exam 4

1 A 26 B 51 C 76 C
2 C 27 C 52 A 77 B
3 B 28 A 53 B 78 B
4 D 29 C 54 B 79 B
5 C 30 C 55 C 80 C
6 D 31 D 56 B 81 D
7 B 32 D 57 B 82 D
8 D 33 B 58 B 83 C
9 D 34 D 59 A 84 D
10 C 35 C 60 D 85 C
11 D 36 D 61 C 86 D
12 B 37 A 62 A 87 D
13 A 38 C 63 D 88 B
14 B 39 B 64 A 89 D
15 A 40 D 65 B 90 D
16 D 41 A 66 A 91 A
17 B 42 B 67 D 92 D
18 B 43 A 68 D 93 D
19 A 44 B 69 C 94 D
20 C 45 B 70 A 95 B
21 A 46 D 71 A 96 B
22 C 47 D 72 B 97 C
23 D 48 C 73 A 98 C
24 C 49 A 74 D 99 B
25 C 50 D 75 D 100 D

Qn 25
$122/$1.22 = 100m (ans : C)

Qn 74
Above high water mark : Yes ( HWM =1.4; NAV = 1.5)
Above hurdle : Yes (benchmark = 2%; fund = 10%)
Hence performance fee = (1.5 -1.4)% x 20% = $0.02
Management fee = 2% x 1.5 = $0.03
Total fees = $0.02 + $0.03 = $0.05 (ans : D)

Qn 97
Term Insurance Policies (Ans : C)
(Term policies have no cash value at the end of term)

Prudential Assurance Company Singapore (Pte) Limited 22

For Internal Use Only. Based on 4th Edition Text (July 2012)