FIN 2164 PRACTICE EXAM QUESTIONS AND ANSWERS
RATED A+
✔✔Pension Fund - ✔✔A large pool of money set aside by employers or governments to
pay retiree benefits.
✔✔Endowment - ✔✔A long-term investment fund at universities/hospitals used to
support operations.
✔✔Family Office - ✔✔A private firm that manages the wealth of ultra-rich families.
✔✔Sovereign Wealth Fund (SWF) - ✔✔A government-owned investment fund.
✔✔Hedge Fund - ✔✔A high-risk investment fund that uses advanced strategies
including short selling, derivatives, and leverage.
✔✔Short Selling - ✔✔Betting that a stock will go down in price by borrowing and selling
shares.
✔✔Portfolio Manager (PM) - ✔✔The person who makes final investment decisions for a
fund.
✔✔Investment Analyst - ✔✔Researches companies, builds models, values assets, and
recommends investments.
✔✔Operations Analyst - ✔✔Processes trades, updates databases, and ensures
accuracy in reporting.
✔✔Underwriting - ✔✔Evaluating risk to determine the price and terms of an insurance
policy.
✔✔Premium - ✔✔The amount of money paid for insurance coverage.
✔✔Deductible - ✔✔The amount the insured must pay out of pocket before insurance
covers costs.
✔✔Claims Adjustor - ✔✔Investigates and evaluates insurance claims to determine
payout.
✔✔Long Term Care Insurance - ✔✔Covers nursing home or assisted living costs.
✔✔Disability Insurance - ✔✔Provides income if a person can't work due to illness or
injury.
, ✔✔Umbrella Insurance - ✔✔Provides extra liability protection above home/auto
insurance.
✔✔Business Interruption Insurance - ✔✔Pays companies for lost profits if operations
are disrupted.
✔✔Reinsurance - ✔✔Insurance purchased by insurance companies to protect against
large catastrophic losses.
✔✔FinTech - ✔✔Technology that improves financial services such as payments,
banking, investing, and lending.
✔✔Machine Learning (ML) - ✔✔Algorithms that learn from data to predict outcomes.
✔✔Algorithmic Trading - ✔✔Using automated programs to buy and sell financial assets
at high speed.
✔✔Robo-Advisor - ✔✔Automated investment platforms that create portfolios using
algorithms.
✔✔Blockchain - ✔✔A decentralized, encrypted ledger used to record transactions
securely.
✔✔Cryptocurrency - ✔✔Digital currencies like Bitcoin built on blockchain technology.
✔✔Tokenization - ✔✔Turning real assets into digital blockchain tokens.
✔✔Smart Contracts - ✔✔Self-executing agreements on blockchain that run
automatically when conditions are met.
✔✔Nonbank Banks - ✔✔Financial companies that offer banking services without being
traditional banks.
✔✔Corporate Finance Option - ✔✔Focuses on internal finance roles within companies.
✔✔Investment Management Option (CFA Track) - ✔✔Prepares students for asset
management, portfolio analysis, and institutional investing.
✔✔Financial Planning Option (CFP Track) - ✔✔Focuses on helping individuals with
financial decisions, planning, and advising.
✔✔Risk Management & Banking Option - ✔✔Focuses on credit analysis, loan
management, and financial institution operations.
RATED A+
✔✔Pension Fund - ✔✔A large pool of money set aside by employers or governments to
pay retiree benefits.
✔✔Endowment - ✔✔A long-term investment fund at universities/hospitals used to
support operations.
✔✔Family Office - ✔✔A private firm that manages the wealth of ultra-rich families.
✔✔Sovereign Wealth Fund (SWF) - ✔✔A government-owned investment fund.
✔✔Hedge Fund - ✔✔A high-risk investment fund that uses advanced strategies
including short selling, derivatives, and leverage.
✔✔Short Selling - ✔✔Betting that a stock will go down in price by borrowing and selling
shares.
✔✔Portfolio Manager (PM) - ✔✔The person who makes final investment decisions for a
fund.
✔✔Investment Analyst - ✔✔Researches companies, builds models, values assets, and
recommends investments.
✔✔Operations Analyst - ✔✔Processes trades, updates databases, and ensures
accuracy in reporting.
✔✔Underwriting - ✔✔Evaluating risk to determine the price and terms of an insurance
policy.
✔✔Premium - ✔✔The amount of money paid for insurance coverage.
✔✔Deductible - ✔✔The amount the insured must pay out of pocket before insurance
covers costs.
✔✔Claims Adjustor - ✔✔Investigates and evaluates insurance claims to determine
payout.
✔✔Long Term Care Insurance - ✔✔Covers nursing home or assisted living costs.
✔✔Disability Insurance - ✔✔Provides income if a person can't work due to illness or
injury.
, ✔✔Umbrella Insurance - ✔✔Provides extra liability protection above home/auto
insurance.
✔✔Business Interruption Insurance - ✔✔Pays companies for lost profits if operations
are disrupted.
✔✔Reinsurance - ✔✔Insurance purchased by insurance companies to protect against
large catastrophic losses.
✔✔FinTech - ✔✔Technology that improves financial services such as payments,
banking, investing, and lending.
✔✔Machine Learning (ML) - ✔✔Algorithms that learn from data to predict outcomes.
✔✔Algorithmic Trading - ✔✔Using automated programs to buy and sell financial assets
at high speed.
✔✔Robo-Advisor - ✔✔Automated investment platforms that create portfolios using
algorithms.
✔✔Blockchain - ✔✔A decentralized, encrypted ledger used to record transactions
securely.
✔✔Cryptocurrency - ✔✔Digital currencies like Bitcoin built on blockchain technology.
✔✔Tokenization - ✔✔Turning real assets into digital blockchain tokens.
✔✔Smart Contracts - ✔✔Self-executing agreements on blockchain that run
automatically when conditions are met.
✔✔Nonbank Banks - ✔✔Financial companies that offer banking services without being
traditional banks.
✔✔Corporate Finance Option - ✔✔Focuses on internal finance roles within companies.
✔✔Investment Management Option (CFA Track) - ✔✔Prepares students for asset
management, portfolio analysis, and institutional investing.
✔✔Financial Planning Option (CFP Track) - ✔✔Focuses on helping individuals with
financial decisions, planning, and advising.
✔✔Risk Management & Banking Option - ✔✔Focuses on credit analysis, loan
management, and financial institution operations.
