CEBS RPA 2 PRACTICE LATEST
EXAM
All of the following is (are) assumptions made in behavioral finance
EXCEPT:
A) Investors make most decisions based on rational beliefs
B) Investors often make systematic mistakes when processing stock
market information
C) Investors strongly prefer avoiding losses as opposed to achieving an
equivalent amount of gains
D) Investors can be overconfident - ANSWERS-A) Investors make most
decisions based on rational beliefs
All of the following statements regarding disclosure requirements for
benefit statements are correct EXCEPT:
A) To a participant in a defined contribution plan who is entitled to
direct plan investments, a plan sponsor must provide a statement once
per quarter
B) To a participant in a defined contribution plan who is not entitled to
direct plan investments, a plan sponsor must provide a statement once
every two years
C) To an active, vested participant of a defined benefit plan, one option
available to a plan sponsor is to provide a benefit statement once every
three years
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PAGE
1
, CEBS RPA 2 PRACTICE LATEST
EXAM
D) To an active, bested participant of a defined benefit plan, one option
available to a plan sponsor is to provide an annual notice describing the
availability of a benefit statement and the manner in which the
participant can obtain one - ANSWERS-B) To a participant in a defined
contribution plan who is not entitled to direct plan investments, a plan
sponsor must provide a statement once every two years
Cash balance plan designs can incorporate all the following features
EXCEPT:
A) A plan contribution formula providing an annual contribution credit
as well as a fixed interest rate credit
B) A plan contribution formula involving an annual contribution credit
as well as an additional credit linked to an equities index
C) Self-directed investments by plan participants in individually
allocated accounts
D) Profit-sharing elements allowing for increased contributions in
periods of superior business performance - ANSWERS-C) Self-directed
investments by plan participants in individually allocated accounts
The Department of Labor (DOL) demonstrated the importance it places
on fiduciaries adopting cybersecurity best practices in the benefit plans
they oversee in all of the following ways EXCEPT:
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PAGE
2
, CEBS RPA 2 PRACTICE LATEST
EXAM
A) Inquiring about the adoption of such practices upon plan audit
following the DOL's issuance of it's sub-regulatory guidance
B) Subsequently updating its initial guidance clarifying that the guidance
applied to all plans governed by ERISA
C) Stipulating a safe harbor protection for fiduciaries who adopt a
majority of the enumerated actions
D) Stating that the Employee Benefits Security Administration (EBSA)
"continues to investigate potential ERISA violations related to the
issue." - ANSWERS-C) Stipulating a safe harbor protection for
fiduciaries who adopt a majority of the enumerated actions
All of the following describe the advantages and disadvantages of using
a packaged product for target-date funds EXCEPT:
A) It is cost-efficient
B) It offers some portability
C) It allows plan sponsors to engage the same manager who oversees the
company's defined contribution plan
D) It may not be suitable for all participants across companies that do
not share the same demographics - ANSWERS-C) It allows plan
sponsors to engage the same manager who oversees the company's
defined contribution plan
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PAGE
3
EXAM
All of the following is (are) assumptions made in behavioral finance
EXCEPT:
A) Investors make most decisions based on rational beliefs
B) Investors often make systematic mistakes when processing stock
market information
C) Investors strongly prefer avoiding losses as opposed to achieving an
equivalent amount of gains
D) Investors can be overconfident - ANSWERS-A) Investors make most
decisions based on rational beliefs
All of the following statements regarding disclosure requirements for
benefit statements are correct EXCEPT:
A) To a participant in a defined contribution plan who is entitled to
direct plan investments, a plan sponsor must provide a statement once
per quarter
B) To a participant in a defined contribution plan who is not entitled to
direct plan investments, a plan sponsor must provide a statement once
every two years
C) To an active, vested participant of a defined benefit plan, one option
available to a plan sponsor is to provide a benefit statement once every
three years
END OF
PAGE
1
, CEBS RPA 2 PRACTICE LATEST
EXAM
D) To an active, bested participant of a defined benefit plan, one option
available to a plan sponsor is to provide an annual notice describing the
availability of a benefit statement and the manner in which the
participant can obtain one - ANSWERS-B) To a participant in a defined
contribution plan who is not entitled to direct plan investments, a plan
sponsor must provide a statement once every two years
Cash balance plan designs can incorporate all the following features
EXCEPT:
A) A plan contribution formula providing an annual contribution credit
as well as a fixed interest rate credit
B) A plan contribution formula involving an annual contribution credit
as well as an additional credit linked to an equities index
C) Self-directed investments by plan participants in individually
allocated accounts
D) Profit-sharing elements allowing for increased contributions in
periods of superior business performance - ANSWERS-C) Self-directed
investments by plan participants in individually allocated accounts
The Department of Labor (DOL) demonstrated the importance it places
on fiduciaries adopting cybersecurity best practices in the benefit plans
they oversee in all of the following ways EXCEPT:
END OF
PAGE
2
, CEBS RPA 2 PRACTICE LATEST
EXAM
A) Inquiring about the adoption of such practices upon plan audit
following the DOL's issuance of it's sub-regulatory guidance
B) Subsequently updating its initial guidance clarifying that the guidance
applied to all plans governed by ERISA
C) Stipulating a safe harbor protection for fiduciaries who adopt a
majority of the enumerated actions
D) Stating that the Employee Benefits Security Administration (EBSA)
"continues to investigate potential ERISA violations related to the
issue." - ANSWERS-C) Stipulating a safe harbor protection for
fiduciaries who adopt a majority of the enumerated actions
All of the following describe the advantages and disadvantages of using
a packaged product for target-date funds EXCEPT:
A) It is cost-efficient
B) It offers some portability
C) It allows plan sponsors to engage the same manager who oversees the
company's defined contribution plan
D) It may not be suitable for all participants across companies that do
not share the same demographics - ANSWERS-C) It allows plan
sponsors to engage the same manager who oversees the company's
defined contribution plan
END OF
PAGE
3
