CISI UK Regulation Professional Integrity V18 Practice Exam Complete 80 Questions

CISI UK REGULATION

PROFESSIONAL

INTEGRITY V18 PRACTICE

EXAM COMPLETE 80

QUESTIONS

Question 1: A company sells newly issued shares to investors to raise fresh capital. In which market does this transaction take place?

Choices:

1) Primary market 2) Secondary market 3) Money market only 4) Derivatives market

Correct Answer: Primary market

Explanation: A primary market is where new securities are issued and the proceeds are raised for the issuer. Secondary markets are where existing securities are traded between investors.Page 1

Question 2: Which action is an example of UK �scal policy rather than monetary policy?

Choices:

1) Changing the Bank Rate 2) Changing government taxation and spending 3) Conducting open-market liquidity operations 4) Changing bank reserve requirements

Correct Answer: Changing government taxation and spending

Explanation: Fiscal policy concerns government taxation, borrowing and public expenditure.Monetary policy is primarily implemented through the Bank of England and includes interest- rate decisions.Question 3: A household wants to reduce the �nancial impact of a breadwinner dying unexpectedly. Which �nancial need is being addressed most directly?

Choices:

1) Liquidity management 2) Financial protection 3) Estate administration only 4) Market speculation

Correct Answer: Financial protection

Explanation: Life assurance and related protection products are designed to reduce the �nancial consequences of events such as death or serious illness.Page 2

Question 4: Which body is principally responsible for prudential regulation of major UK banks, building societies, credit unions, insurers and certain investment �rms?

Choices:

1) Financial Conduct Authority 2) Prudential Regulation Authority 3) Financial Ombudsman Service 4) Competition and Markets Authority

Correct Answer: Prudential Regulation Authority

Explanation: The PRA is the prudential regulator for banks, building societies, credit unions, insurers and certain major investment �rms. The FCA focuses primarily on conduct and market integrity across a wider range of �rms.

Question 5: What is the principal focus of the Payment Systems Regulator?

Choices:

1) Setting income tax rates 2) Regulating payment systems to promote competition, innovation and service-user interests 3) Determining compensation for investment complaints 4) Authorising all occupational pension schemes Correct Answer: Regulating payment systems to promote competition, innovation and service-user interests Explanation: The Payment Systems Regulator oversees designated payment systems and seeks to promote e�ective competition, innovation and the interests of service users.Page 3