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FIN 501 – FINAL 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
1. Automatic reinvestment plans - correct answer -Enables
investors to keep their capital fully employment by using
dividend and/or capital gains income to buy additional shares in
the fund.
2. Retirement program - correct answer -Today all mutual fund
provide a service that allows individuals to setup-tax deferred
retirement programs as either IRA or keogh accounts.
3. Cash Market - correct answer -A market where a product or
commodity changes hands in exchange for a cash price paid
when the transaction is completed.
4. Future Contract - correct answer -Contracts are obligate
investors to buy or sell some underlying asset at a fixed price
on a specific future date.
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5. Future Market - correct answer -The organized market for the
trading of future contracts.
6. Open-out cry auction - correct answer -In futures trading, an
auction in which trading is done through a series of shouts,
body motions and hand signals.
7. Hedgers - correct answer -Producers and processor who use
futures contracts to protect their interest in an underlying
commodity or financial instrument.
8. Speculators - correct answer -Investors who trade a particular
asset purely to take advantage of a price change that they
believe will occur.
9. Long position - correct answer -Buying a contract
10. Short position - correct answer -Selling a contract
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11. Open interest - correct answer -Total number of contracts
that are open and have not settled by delivery, or offsetting
transaction.
12. Round-trip commissions - correct answer -Includes the
commission costs on both ends of the transaction (to buy and
sell contract).
13. Margin deposit - correct answer -Margin requirement range
from 2% to 10%
14. Maintenance margin - correct answer -Minimum amount of
deposit required at all times. Margin call occurs if value drops
below allowed amount.
15. Market-to-the-market - correct answer -An investor's margin
position is checked daily
16. Speculating - correct answer -Specters hope to capitalize
on swings in commodity prices by going long or shot
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17. Spreading - correct answer -The idea is to combine two or
more different contracts into a position that offers the potential
for a modest amount of profit but restricts your exposure to
loss.
18. Financial futures - correct answer -A segment of the futures
market in which futures contracts are traded on financial
instruments.
19. Currency futures - correct answer -Foreign currency
contracts, major market currencies such as British pound,
Swiss France, Canadian dollar, Japense yen and Euro
20. Stock index futures - correct answer -Contract pegged to
broad-based measures of stock market performance.
21. Future options - correct answer -Options that give the
holder the right to buy or sell single standardized future
contract or a specified period of time of a specified strike price.
FIN 501 – FINAL 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
1. Automatic reinvestment plans - correct answer -Enables
investors to keep their capital fully employment by using
dividend and/or capital gains income to buy additional shares in
the fund.
2. Retirement program - correct answer -Today all mutual fund
provide a service that allows individuals to setup-tax deferred
retirement programs as either IRA or keogh accounts.
3. Cash Market - correct answer -A market where a product or
commodity changes hands in exchange for a cash price paid
when the transaction is completed.
4. Future Contract - correct answer -Contracts are obligate
investors to buy or sell some underlying asset at a fixed price
on a specific future date.
, Page | 2
5. Future Market - correct answer -The organized market for the
trading of future contracts.
6. Open-out cry auction - correct answer -In futures trading, an
auction in which trading is done through a series of shouts,
body motions and hand signals.
7. Hedgers - correct answer -Producers and processor who use
futures contracts to protect their interest in an underlying
commodity or financial instrument.
8. Speculators - correct answer -Investors who trade a particular
asset purely to take advantage of a price change that they
believe will occur.
9. Long position - correct answer -Buying a contract
10. Short position - correct answer -Selling a contract
, Page | 3
11. Open interest - correct answer -Total number of contracts
that are open and have not settled by delivery, or offsetting
transaction.
12. Round-trip commissions - correct answer -Includes the
commission costs on both ends of the transaction (to buy and
sell contract).
13. Margin deposit - correct answer -Margin requirement range
from 2% to 10%
14. Maintenance margin - correct answer -Minimum amount of
deposit required at all times. Margin call occurs if value drops
below allowed amount.
15. Market-to-the-market - correct answer -An investor's margin
position is checked daily
16. Speculating - correct answer -Specters hope to capitalize
on swings in commodity prices by going long or shot
, Page | 4
17. Spreading - correct answer -The idea is to combine two or
more different contracts into a position that offers the potential
for a modest amount of profit but restricts your exposure to
loss.
18. Financial futures - correct answer -A segment of the futures
market in which futures contracts are traded on financial
instruments.
19. Currency futures - correct answer -Foreign currency
contracts, major market currencies such as British pound,
Swiss France, Canadian dollar, Japense yen and Euro
20. Stock index futures - correct answer -Contract pegged to
broad-based measures of stock market performance.
21. Future options - correct answer -Options that give the
holder the right to buy or sell single standardized future
contract or a specified period of time of a specified strike price.
