FISD FIA Practice Questions Curious about FISD FIA certification? Try these practice questions to get a feel for the exam. Question Title * 1. Which of the following is a regulator in the European Union? Check all that apply. A. European Central Bank (ECB) B. European Securities and Markets Authority (ESMA) C. European Financial Supervisory Authority (EFSA) D. European Insurance and Occupational Pensions Authority (EIOPA) E. Securities and Exchange Surveillance Commission Question Title * 2. Order routing is a function of which of the following? A. Front office B. Middle office C. Back office D. Both the middle office and the back office Question Title * 3. Which of the following best describes dark pools? A. Repositories of blockchain information B. CDOs backed by diversified pools of loans C. CDOs backed by subprime mortgages only D. Private networks for trading financial instruments Question Title * 4. True or False: A pension fund can be considered a financial intermediary. True False Question Title * 5. True or False: A long-only hedge fund is most likely to do well during a bear market. True False Question Title * 6. True or False: As it relates to interest rate options, a call enables its bearer to profit from a rise in interest rates. True False Question Title * 7. Which of the following are considered company fundamentals? Check all that apply. A. Assets B. Liabilities C. Number of employees D. Total executive pay E. Position in the market relative to its competitors Question Title * 8. What best defines an index? A. An investment product that invests funds from a pool of multiple investors in a variety of stocks, bonds, and other assets B. A security that has low feeds and high daily liquidity C. A benchmark used to measure changes in the financial markets D. A document listing all stock symbols traded on a given exchange Question Title * 9. ACTIV Financial is best described as which of the following? A. An exchange B. A data vendor C. A service provider D. A financial institution Question Title * 10. The daily closing value of the Dow Jones Industrial Average is an example of what? A. Historical data B. Full tick data C. Snapshot data D. Time series data E. Delayed data Question Title * 11. Which of the following industry classification systems is owned by FTSE? A. GICS B. SIC C. ICB D. NAICS Question Title * 12. Which of the following best defines the term "golden copy"? A. The final version of a list of end of day pricing for every security on a given exchange B. A set of consolidated data drawn from multiple feeds or data vendors C. The copy that a news organization will print or publish online D. A document which demonstrates the origins of a set of data Question Title * 13. Which of the following is a hardware component that can affect latency? A. Cable material (e.g. copper vs. optical fiber) B. Operating system C. Code D. Monitor Question Title * 14. Which of the following applications is MOST important to the job function of an analyst? A. Microsoft Excel B. Slack C. Outlook D. Microsoft Word E. Perl Question Title * 15. What is big data? A. The concept of extracting additional value from stored data through analytics B. A large set of behavioral data captured by government surveillance C. A set of data so large that it defies ordinary data processing techniques D. Unstructured data that is collected but not analyzed E. Both A and C Question Title * 16. How does grid computing differ from cluster computing? A. Grid computers use FPGAs only. B. Grid computers are connected to the same network in the same location. C. Grid computers are arrayed in blocks of four. D. Grid computers may perform different tasks in pursuit of the same goal. Question Title * 17. Speech recognition is handled by which type of software? A. Middleware B. VPN C. Transmission medium D. Messaging applications Question Title * 18. Which of the following best defines complex event processing? A. The action taken by a data vendor after a service outage B. The analysis which finds patterns in data from multiple combined sources C. The calculations an algorithm makes before making a trade D. The term used to describe all of the events that affect the pricing of a given security Question Title * 19. Which of the following was a consequence of the Dodd-Frank Act? A. Regulatory authority over OTC swaps was established. B. The FDIC now insures investments in mortgage-backed securities. C. Anti-money laundering (AML) regulations were expanded. D. The Volcker Rules that limits prop trading was made weaker. Question Title * 20. What is meant by "best execution"? A. The lowest latency in the market B. Trading at market price C. An investment firm's duty to its customers to get the best price for the customers' orders D. Algorithmic trading Question Title * 21. Which regulation specifically increased regulation of hedge funds and private equity firms? A. MiFID B. Basel III C. AIFMD D. Solvency II Question Title * 22. What is a consolidated tape? A. A report of trading activity for a given security across all of the exchanges on which it trades B. A report of trading activity for all of the securities in a given mutual fund C. Full tick data for all of the stocks in a given index D. A list of all end of day prices for the stocks traded on a given exchange Grade it!
