Online Access Free ICWIM Practice Test

For a key person protection policy, a company will:

• A.Be required to pay ever-increasing premiums
• B.Be insured against staff moving to a competitor
• C.Seek to be covered for an undefined sum of money
• D.Need to establish an insurable interest

If an investor expects to receive a bullet payment, they are likely to be invested in a:

• A.Treasury bond
• B.Convertible bond
• C.Zero coupon bond
• D.Premium bond

Which type of individual is most likely to be subject to enhanced due diligence (EDD) checks?

• A.A corporate client
• B.A high-net-worth individual
• C.A government official
• D.A company director

What is the role of a central counterparty (CCP)?

• A.The CCP guarantees that the counterparties will not default
• B.It interposes itself between the counterparties to a trade, becoming the buyer to every seller and the seller to every buyer
• C.To provide funding to counterparties as and when required
• D.To act as a market maker between counterparties

Once a company reaches the point known as the minimum efficient scale, the "theory of the firm" suggests that the company should:

• A.Decrease its unit price
• B.Halt its output expansion
• C.Accelerate its output expansion
• D.Increase its unit price