English MPFE Pass Paper Question Bank (QB)

2CEXAM Mock Question
Mandatory Provident Fund Schemes

Examination
12-Sep-19
16:39:19
1 The face value of the bonds represents: Topic Appendix
VI
A Price Chapter b
B The amount to be repaid when the bond is redeemed Section
C Intrinsic value QID 1092
D All of the above are true Ans B Hot
Exp Each bond has a face value (or par value) which is the amount to be repaid when the bond is redeemed.
The answer is B.
2 Bonds usually have a maturity date, but some have no maturity date. They're called? Topic Appendix
VI
A Callable bonds Chapter b
B Perpetual bonds Section
C Par bonds QID 1104
D Interest bonds Ans B Hot
Exp A bond usually has a maturity date which is the date the bond is to be redeemed, although some have no
maturity dates and are called perpetual bonds. The answer is B.
3 A bond usually has a maturity date, although some have no maturity dates and are called: Topic Appendix
VI
A Perpetual bonds Chapter b
B Zero coupon bonds Section
C Treasury bills QID 1324
D Junk bonds Ans A Hot
maturity dates and are called perpetual bonds. The answer is A.
Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.1

Please be reminded our company has no relationship with the Hong Kong Securities and Investment Institute (HKSI). The study materials we provide are
not related to the Hong Kong Securities and Investment Institute (HKSI) in any manner. The Hong Kong Securities and Investment Institute (HKSI) does
not offer any HKSI Past Paper or HKSI Mock Paper for sale.
4 Equities, also known as equity shares. They are called "shares" because they represent ownership in a Topic Appendix
corporation. The basic features of equities include: VI
A Share prices do not rise or fall sharply because of market conditions Chapter c
B If a company is unsuccessful, then the value of its shares is likely to decline as the company may increase Section
dividend pay-out
C The investment return can only be the capital appreciation QID 1093
D The investment objectives include dividend income and capital appreciation Ans D Hot
Exp Share prices on stock markets can change rapidly depending on the prevailing stock market condition and
the financial performance of the company.
If a company is unsuccessful, then the value of its shares is likely to decline

and the company may cut or terminate dividend pay-out.
The investment return comprises both dividend income and capital appreciation.
The answer is D.
5 A bond usually has a maturity date which is the date the bond is to be redeemed. Some bonds have no Topic Appendix
maturity dates and are called…? VI
A Perpetual bonds Chapter d
B Government bonds Section
C Zero coupon bonds QID 340
D Corporation bonds Ans A Hot
maturity dates and are called perpetual bonds. The answer is A.
6 Which of the following statements about the insurance policy is true? Topic Appendix
I. Most insurance contracts provide for death, disability or medical benefits with a little investment element VI
II. Some policies are for retirement schemes and may be linked to investments
III. An insurance policy will be underpinned by an insurance fund consisting of an investment portfolio of
securities, including bonds, equities, etc
IV. From 2011 onwards, there is only a Class G insurance policy which must be backed up by the
guarantor who may be the insurance company issuing the insurance policy
A I, II, III Chapter f
B I, II, IV Section
C II, III, IV QID 1094
D I, II, III, IV Ans D Hot
Exp All statements are true. The answer is D.

7 Bond prices fluctuate according to interest rates. What happens to bond prices if interest rates go up? Topic Appendix
VI
A Go up Chapter b
B Fall Section
C Invariant QID 1105
D The face value will go to zero Ans B Hot
Exp The price of a bond moves up and down, but in an opposite direction to interest rates. So if interest rate
falls, the higher coupon rate of a bond looks comparatively more attractive and the price of the bond goes
up. The answer is B.

8 When market rates fall, bond prices will: Topic Appendix
VI
A Fall Chapter b
B Rise Section
C Have no impact QID 1091
D Smooth and steady Ans B Hot
Exp The price of a bond moves up and down, but in an opposite direction to interest rates. So if interest rate
falls, the higher coupon rate of a bond looks comparatively more attractive and the price of the bond goes
up. The answer is B.
9 Money market instruments include: Topic Appendix
VI
A Certificates of deposit Chapter a
B Treasury bills Section
C Commercial paper QID 1296
D All of the above Ans D Hot
Exp Money market instruments include certificates of deposit, treasury bills and commercial paper. The
answer is D.
10 Which of the following calculates correctly the net asset value per unit of a fund? Topic Appendix
VI
A The total market value of underlying investments of the fund plus cash held minus administrative Chapter
expenses divided by the number of units issued
B The total market value of underlying investments of the fund plus the cash held multiplied by Section
administrative expenses
C The total market value of underlying investments of the fund minus the administrative expenses QID 1082
D The total market value of underlying investments of the fund plus the cash held, plus administrative Ans A Hot
expenses
Exp The NAV per unit of a fund is determined by dividing the aggregate market value and the cash holding of
the underlying investments of the fund by the number of units issued. All administrative and management
fees payable (accrued to date) are to be deducted before the derivation of the NAV of the fund. The answer
is A.
11 One function of derivatives is "offsetting", whereby losses on assets are offset. What are the uses of these Topic Appendix
derivatives called? VI
A Balancing function Chapter d
B Leveraging function Section
C Demanding function QID 1081
D Hedging function Ans D Hot
Exp One function of derivatives is "offsetting", whereby losses on assets are offset. The uses of these
derivatives are called hedging function. The answer is D.

12 Insurance policies: Topic Appendix
I. Most insurance contracts provide for death, disability or medical benefits with little investment element VI (f )
II. An insurance policy will be underpinned by an insurance fund consisting of an investment portfolio of
securities
III. A class G insurance policy is a policy with guarantees on capital or return
IV. The insurance fund is managed either by the insurance company issuing the insurance policy or by a
professional investment manager appointed by the insurance company
A I, II, III Chapter
B I, II, IV Section
C I, III, IV QID 1341

13 According to the Guidelines, "Segregation of Client Assets" refers: Topic Appendix
I. A registered intermediary should handle the contribution in cash from clients III 54-56
II. A registered intermediary does not expect to handle client assets
III. A registered intermediary should keep client assets separate from its own assets at all times
IV. A registered intermediary should set up an independent account for the client
B I, II, IV Section
D II, III, IV Ans D Hot
Exp A registered intermediary is generally not expected to handle client assets. In the
event that a registered intermediary is asked by its client to forward a cheque
payment to the approved trustee of a registered scheme, it should do so promptly.
A registered intermediary should at all times keep client assets separate from its own assets and should
not use client assets for any purpose other than for the purposes of the client.
The answer is D.
14 When discussing the past performance of constituent funds with clients and comparing the investment Topic Appendix
performance, a registered intermediary should: III 40-42
I. Intermediaries should make predictions on a fund performance
II. Mainly compare a constituent fund's performance with the performance of constituent fund's of the
same type and over a long term period (at least 5 years)
III. Make like with like comparisons in terms of risk level, investment strategies and objectives
IV. Compare the net performance of one constituent fund with the net performance of another fund
B I, II, IV Section
D II, III, IV Ans D Hot
Exp Whilst it may be appropriate to make reference to general market outlook, a

registered intermediary should avoid predicting, projecting or forecasting a
constituent fund's future or likely performance. The answer is D.

15 Keeping Record of Orders in the Guidelines includes: Topic Appendix
I. Order records should be kept by the PI for at least 6 years III 16
II. Order records should be kept by the PI for at least 7 years
III. Should record order instructions relating to material decisions received from clients
A I Chapter
B II Section
C I, III QID 1327
D II, III Ans D Hot
Exp A registered intermediary should record the particulars of any order instructions
relating to material decisions received from a client (including the date and time of receipt and details of
the order). The records of orders should be kept by the
principal intermediary for a minimum period of seven years. The answer is D.
16 Which of the following is not the job of the responsible officer? Topic Appendix
II
A Must use the best endeavours for carrying out specified responsibilities in relation to the principal Chapter 1
intermediary
B Must ensure that subsidiary intermediaries submit annual reports on time each year Section
C Must establish and maintain proper controls and procedures for securing compliance by the principal QID 1116
intermediary, and by each subsidiary intermediary attached to the
principal intermediary, with this Part
D Must use the principal intermediary's best endeavours to secure observance by subsidiary intermediaries Ans B Hot
attached to the principal intermediary of the controls and
procedures established
Exp The job of the responsible officer does not include ensuring that subsidiary intermediaries submit annual
reports on time each year. The answer is B.
17 A registered intermediary should not, directly or indirectly, offer any rebates, to any person for the Topic Appendix
purpose of encouraging a client to: III
A Apply to join an MPF scheme Chapter 6
B Make a contribution to an MPF scheme Section
C Transfer accrued benefits from one MPF scheme to another QID 1148

18 According to the Guidelines on Conduct Requirements for Registered Intermediaries, a registered Topic Appendix
intermediary should not, directly or indirectly, offer any rebates, gifts or incentives (including, without III
limitation, commissions or other
monetary/non-monetary benefits) to any person for the purpose of encouraging a
client to:
A Become a member Chapter 6
B Make a contribution Section
C Transfer any benefits QID 1149

19 Under the Guidelines on Conduct Requirements for Registered Intermediaries, a registered intermediary Topic Appendix
should not, directly or indirectly, offer any rebates, gifts or incentives to any person for the purpose of III
encouraging a client to make key decisions. The above restriction does not apply to which of the
following?
I. A discount of fees and charges by way of bonus units, bonus credit or rebates credited to the MPF
account of the recipient of the offer
II. A non-monetary benefit associated with
a membership privilege program offered by or approved by the approved trustee or sponsor of the
registered scheme
III. A discount of the registered intermediary's own fees and charges by way of a reduction in the amount
directly payable by the client
IV. A commission or other monetary/non-monetary benefits paid to a registered
intermediary for performing services as a registered intermediary
A I, II Chapter 7
B I, III Section
C I, II, III QID 1150
Exp The above restriction does not apply to all the options. The answer is D.
20 A registered intermediary should have a good understanding, of any registered Topic Appendix
scheme and constituent fund which it promotes and/or on which it gives regulated III
advice, including:
A The level of fees and charges relating to the scheme and the various constituent funds in the scheme Chapter 14
B The investment policies, types and levels of risks and terms and conditions of the various constituent Section
funds in the scheme
C General scheme operational issues such as those relating to transfers and withdrawals QID 1240
Exp A registered intermediary should have a clear understanding of all the options. The answer is D.
21 A _____ should conduct ____ on any registered scheme and constituent fund which it promotes and/or on Topic Appendix
which it gives regulated advice prior to the selling and marketing of such registered scheme and/or III
constituent fund and on an on-going basis at appropriate interval.
A Registered intermediary, compliance training Chapter 15
B Subsidiary intermediary, product training Section
C Principal intermediary, product due diligence QID 1151
D Responsible officer, control measures Ans C Hot
Exp A principal intermediary should conduct product due diligence on any registered
scheme and constituent fund which it promotes and/or on which it gives regulated
advice prior to the selling and marketing of such registered scheme and/or constituent fund and on an on-
going basis at appropriate interval. The answer is C.

22 A vulnerable client is a person who is not, or may not be, able to fully understand the type of information Topic Appendix
to be provided and discussed or who is not, or may not be, able to make that key decision. Which of the III
following is least likely to be vulnerable clients?
A People with less investment experience Chapter 18
B Illiterate people Section
C People with an education level of primary school or below QID 1128
D Those who are visually or otherwise impaired in a manner that affects their ability to make the relevant key Ans A Hot
decision independently
Exp The vulnerable clients may include, for example, those who are illiterate, with low level (primary level or
below) of education, visually or otherwise impaired in a manner that affects their ability to
make the relevant key decision independently. The answer is A.
23 In the course of conducting a regulated activity, a registered intermediary should Topic Appendix
provide extra care of, and support for, clients with special needs (vulnerable clients) during the sales and III
marketing process relating to the making of a key
decision. A vulnerable client for this purpose is?
A Visually impaired people Chapter 18
B Persons with low level (primary level or below) of education Section
C Persons who are impaired in a manner that affects their ability to make the relevant key decision QID 342
independently
D Including all the above Ans D Hot
Exp A vulnerable client for this purpose is a person who is not, or may not be, able to fully understand the type
of information to be provided and discussed or who is not, or may not be, able to make that key decision.
Therefore, all the options are the vulnerable clients. The answer is D.
24 According to the Guidelines on Conduct Requirements for Registered Intermediaries, a vulnerable client is Topic Appendix
a person who is not, or may not be, able to fully understand the type of information to be provided and III
discussed or who is not, or may not be, able to make that key decision. Which of the following is not
vulnerable clients?
A Illiterate people Chapter 18
B People with low level of education Section
C People with low level of investment knowledge QID 1152
D Those who are visually or otherwise impaired in a manner that affects their ability to make the relevant key Ans C Hot
decision independently
Exp Vulnerable clients may include, for example, those who are illiterate, with low level (primary level or below)
of education, visually or otherwise impaired in a manner that affects their ability to
make the relevant key decision independently. The answer is C.
provide extra care of, and support for, clients with special needs (vulnerable clients). The vulnerable III
clients may be:
A People with lower income levels Chapter 18
B Illiterate people Section
C People with less investment experience QID 1130
D All of the above Ans B Hot
make the relevant key decision independently. The answer is B.

26 A registered intermediary should provide extra care of, and support for, clients with special needs Topic Appendix
(vulnerable clients). Which of the following is most likely to be vulnerable clients? III
A People with less investment experience Chapter 18
B People with low level of education (primary level or below) Section
C Older people QID 1129
D People with less work experience Ans B Hot
make the relevant key decision independently. The answer is B.
27 Who is the least likely to be affected in making key decisions when dealing with vulnerable clients? Topic Appendix
III
A People with low level of education Chapter 18
B People with less investment experience Section
C Illiterate people QID 1317
D Institutional investors Ans D Hot
make the relevant key decision independently. The answer is D.
28 According to the Guidelines on Conduct Topic Appendix
Requirements for Registered Intermediaries, In the course of conducting a regulated activity, a registered III
intermediary should
provide extra care of, and support for, clients with special needs ("vulnerable clients") during the sales
and marketing process relating to the making of a key
decision. Which of the following is the least likely to be a vulnerable client?
A Illiterate people Chapter 18
B People with low level of education Section
C People who have no investment experience QID 1298
D People who are visually or otherwise impaired in a manner that affects their ability to make the relevant Ans C Hot
key decision independently
make the relevant key decision independently. The answer is C.

29 A registered intermediary should provide extra care of, and support for, clients with special needs Topic Appendix
("vulnerable clients") during the sales process relating to the making of a key decision. A vulnerable client III
for this purpose is:
I. A person who is not, or may not be,
able to fully understand the type of information to be provided and discussed
II. Visually or otherwise impaired in a manner that affects the ability to make the relevant key decision
independently
III. With low level(primary level or below)
of education
IV. A person who is not, or may not be, able to make that key decision
A I, II, III Chapter 18
B I, II, IV Section
C II, III, IV QID 1117

provide extra care of, and support for, clients with special needs ("vulnerable clients"). A vulnerable client III
for this purpose is a person who is not, or may not be, able to fully understand the type of information to
be provided and discussed or
who is not, or may not be, able to make that key decision. What are the "key decisions"?
I. Choosing a particular constituent fund
II. Making a transfer that would involve a transfer out of a guaranteed fund
III. Making an early withdrawal of accrued benefits from the MPF System
IV. Making how much voluntary contributions into a particular registered scheme or a particular
constituent fund
A I, III Chapter 18
B I, II, III Section
C I, II, IV QID 1131
Exp The "key decisions" refer to all the decisions. The answer is D.
31 Which of the following is not part of a post-sale call conducted for a vulnerable client? Topic Appendix
III
A Confirm that the intermediary has provided the client with the offering document, explained the key Chapter 19
features of the relevant registered scheme and constituent funds
B Verify the key decision that the client has made Section
C Confirm the client's understanding of the key decision he has made QID 1113
D Confirm the client selects a friend or a member of staff to witness Ans D Hot
Exp The post-sale call conducted for a vulnerable client does not include to confirm the client selects a friend
or a member of staff to witness. The answer is D.

32 "Extra care" should include: Topic Appendix
I. To be accompanied by a companion to witness the relevant sales process and constituent fund III
selection process
II. To have an additional member of staff to witness the relevant sales process and constituent fund
selection process
III. A copy of the signed document should be provided to the client and the original
should be kept by the principal intermediary for a minimum period of seven
years
A II, III Chapter 19
B I, III Section
C I, II QID 343
D I, II, III Ans D Hot
Exp "Extra care" should include all the options. The answer is D.
33 Having assessed a client as a vulnerable client, a registered intermediary should: Topic Appendix
III
A Conduct post-sale call and confirm the client's understanding of the key decision he has made Chapter 19
B Conduct post-sale call or confirm the client's understanding of the key decision he has made Section
C Stop trading immediately QID 1132
D It needs to be reassessed Ans A Hot
Exp Having assessed a client as a vulnerable client, a registered intermediary should conduct post-sale call
and confirm the client's understanding of the key decision he has made. The answer is A.
34 In case the principal intermediary does not have an audio recording system, it should make arrangement Topic Appendix
with the ___ for an authorized person of one of these parties to III
conduct the post-sale call.
A Approved trustee/sponsor/promoter Chapter 19
B Frontline Regulator Section
C Mandatory Provident Fund Schemes Authority QID 1133
D Subsidiary intermediary Ans A Hot
Exp In case the principal intermediary does not have an audio recording system, it should make arrangement
with the approved
trustee/sponsor/promoter for an authorized person of one of these parties to conduct the post-sale call.
The answer is A.
35 Having assessed a client as a vulnerable client, a registered intermediary should exercise extra care. Topic Appendix
Which of the following is incorrect? III
A To have an additional member of staff to witness the relevant sales process Chapter 19
B To be accompanied by a companion to witness the relevant sales process and constituent fund selection Section
process
C Conduct post-sale call QID 1134
D Record the sales process and constituent fund selection process Ans D Hot
Exp The sales process and constituent fund selection process do not need to be recorded. The answer is D.


English MPFE Pass Paper Question Bank (QB)

Cargado por

Información del documento

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

English MPFE Pass Paper Question Bank (QB)

Cargado por

Copyright:

Formatos disponibles

2CEXAM Mock Question

Mandatory Provident Fund Schemes

B The amount to be repaid when the bond is redeemed Section

C Intrinsic value QID 1092

D All of the above are true Ans B Hot

B Perpetual bonds Section

C Par bonds QID 1104

D Interest bonds Ans B Hot

B Zero coupon bonds Section

C Treasury bills QID 1324

D Junk bonds Ans A Hot

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.1

If a company is unsuccessful, then the value of its shares is likely to decline

B Government bonds Section

C Zero coupon bonds QID 340

D Corporation bonds Ans A Hot

A I, II, III Chapter f

C II, III, IV QID 1094

D I, II, III, IV Ans D Hot

Exp All statements are true. The answer is D.

C Invariant QID 1105

D The face value will go to zero Ans B Hot

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.2

C Have no impact QID 1091

D Smooth and steady Ans B Hot

B Treasury bills Section

C Commercial paper QID 1296

D All of the above Ans D Hot

B Leveraging function Section

C Demanding function QID 1081

D Hedging function Ans D Hot

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.3

C I, III, IV QID 1341

D I, II, III, IV Ans D Hot

Exp All statements are true. The answer is D.

C I, III, IV QID 1329

D II, III, IV Ans D Hot

C I, III, IV QID 1328

D II, III, IV Ans D Hot

Exp Whilst it may be appropriate to make reference to general market outlook, a

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.4

C I, III QID 1327

D II, III Ans D Hot

B Make a contribution to an MPF scheme Section

D All of the above Ans D Hot

Exp All statements are true. The answer is D.

B Make a contribution Section

C Transfer any benefits QID 1149

D All of the above Ans D Hot

Exp All statements are true. The answer is D.

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.5

C I, II, III QID 1150

D I, II, III, IV Ans D Hot

D All of the above Ans D Hot

B Subsidiary intermediary, product training Section

C Principal intermediary, product due diligence QID 1151

D Responsible officer, control measures Ans C Hot

Website: www.2cexam.com Phone: 21109644 WhatsApp:93472064 WeChat:hk2cexam P.6

B Illiterate people Section

C People with an education level of primary school or below QID 1128

B Persons with low level (primary level or below) of education Section

B People with low level of education Section

C People with low level of investment knowledge QID 1152

B Illiterate people Section