Online Access Free AAFM.CWM_LEVEL_2.v2022-03-08.q307 Practice Test (Page 52)

Section A (1 Mark)
The length of the insurance industry's business cycle is shortened because of

A.None of these

B.Easy entry and exit conditions

C.High specialization

D.Regulatory provisions

Section B (2 Mark)
An approved superannuation fund must have a minimum of _______ trustees

A.4

B.No restriction is applicable

C.2

D.3

Section B (2 Mark)
Hybrid plans are

A.Combination of ESOP and Money purchase plan

B.None of the above

C.Combination of DB & ESOP plan

D.Combination of DB & DC plan

Section B (2 Mark)
Money kept in current account normally earns

A.4%

B.2%

C.None of the above

D.0%

Section A (1 Mark)
Which of the following is a challenge of making a consumer loan?

A.Consumers can more easily hide pertinent information

B.Consumers must disclose publicly any changes in their health that would affect the loan

C.Audited financial statements are provided by consumers quarterly

D.Consumers can more easily adjust to financial setbacks than can businesses

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