CWM_LEVEL_1

CWM_LEVEL_1 practice questions, page 5 of 6, with answer review and explanations.

Question 21

Doctrine of subrogation applies only to

  1. I and II only
  2. Il only
  3. I, II and III
  4. None of the above

Question 22

What is a contract?

  1. An agreement between two or more parties which creates no obligation to do a particular thing.
  2. A contract is an agreement between two or more parties that does not establish an enforceable legal relationship.
  3. Contract consists of reciprocal promise that the law will not enforce.
  4. A contract is the result of a promise to do a certain thing in exchange for a promise from the other person who is a party to the contract.

Question 23

"Contango" is

  1. Forward price is lower than expected future spot price
  2. Forward price is higher than expected future spot price
  3. Forward price is at the same price level as that of expected future spot price
  4. None of the above

Question 24

What is burn Arbun?

  1. Loan of a particular piece of property
  2. Credit sale
  3. Down payment
  4. Deposits in trust

Question 25

Under the efficient market hypothesis, which of the following term best describes the movement of stock prices?

  1. Statistical.
  2. Random.
  3. Diverse.
  4. Predictable.