Practice Quiz

FRM Financial Risk Manager Practice Test - Question List

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66. A hedge fund is...
  1. A fund that can be transferred among investors.
  2. An investment fund open to a limited range of investors permitted to undertake a wider range of investment and trading activities.
  3. An unlimited fund that the Federal Reserve Bank assigns for only limited corporations.
  4. An unconditional fund for the development of venture companies.
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67. What of the following is considered a “hedge fund”? Select all that apply.
  1. A venture capital fund.
  2. A private equity fund.
  3. A real estate partnership.
  4. None of the above.
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68. The Mississippi Scheme was formulated by John Law for the colonization and commercial exploitation of the Mississippi Valley and other French colonial areas. The main reason for its financial collapse in October 1720 was
  1. The failure to launch a plan to exploit gold in the Mississippi, since there was no gold to be found.
  2. The colonization and commercial exploitation of the Mississippi valley and other French colonial areas faced a strong opposition from the tribal people.
  3. The speculation about the richness of the area.
  4. Decline in investment from other overseas companies.
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69. On June 30, 2009, Bernard Madoff was sentenced to 150 years for his fraudulent financial activities. He defrauded thousands of investors out of $65 billion. What fraudulent scheme did he use?
  1. A Ponzi scheme.
  2. A Black-Scholes scheme.
  3. An advance fee scheme.
  4. A bucket shop scheme.
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70. What is Fannie Mae?
  1. A well known wholesale chain in America.
  2. The Federal National Mortgage Association (FNMA).
  3. The name of a brand for electronic fans.
  4. The Federal Home Loan Mortgage Corporation.
  5. All of the above.
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