Question 1

Section A (1 Mark)

Loans to individuals and families to finance the purchase of new homes are known as:

Options :

A : Non installment loans

B : Installment loans

C : Residential mortgage loans

D : Nonresidential cash loans

Answer: C

Question 2

Section A (1 Mark)

Which of the following is true regarding the resistance level?

Options :

A : Resistance levels tend to develop due to profit taking.

B : It is the level at which a significant decrease in demand is expected.

C : It is the level at which a significant increase in supply is expected.

D : Resistance levels usually develop after a stock reaches a new low.

Answer: C

Question 3

Section A (1 Mark)

When deciding under uncertainty, which of the following generally accepted guidelines that a decision maker should follow:

Options :

A : III and IV

B : II and V

C : I and III

D : None of the Above

Answer: D

Question 4

Section B (2 Mark)

After making an investment, assume that an investor overhears a news report that has negative implications regarding the potential outcome of the investment he has just executed. How likely is he to then seek information, if he exhibits self attribution bias, that could confirm that you've made a bad decision?

Options :

A : Very unlikely.

B : Unlikely.

C : Likely.

D : Very likely.

Answer: A

Question 5

Section A (1 Mark)

A(n)____________________________________________ is where the customer can use the difference between some percentage of the appraised value of their home and the mortgage remaining to secure a loan. This loan can be used to fund a college education, pay for a vacation or pay for home improvements.

Options :

A : Home Equity Loan

B : Personal Loan

C : Auto Loan

D : Loan against Shares

Answer: A