AFE

What are batched, and input control totals are established before delivery to data entry?A . Coded applicationsB . Billing premiumsC . Issuing policiesD . Business applicationsView AnswerAnswer: A

Fidelity bonds cover employees against dishonest acts by employees.A . TrueB . FalseView AnswerAnswer: A

What represent legal agreements between buyers or sellers and represent commitments to buy or sell financial instruments at specified dates and prices?A . Future contractsB . Present contractsC . Accounting contractsD . Financial contractsView AnswerAnswer: A

Financial statements of a self-sustaining foreign operation are translated using the current rate method whereby assets and liabilities are translated in the reporting currency using the exchange rate.A . TrueB . FalseView AnswerAnswer: A

Accounting for escrow funds is difficult because of the large number of transactions related to such funds. A separate bank account or a trust bank account may be opened, with all escrow receipts deposited into it to prevent:A . Commingling of escrow funds with a company’s operating fundsB . Commingling...

Which of the following is NOT the type of Merit rating?A . Policy ratingB . Schedule ratingC . Experience ratingD . Retrospective Experience ratingView AnswerAnswer: A

A company that has its loans serviced, for whatever reason, is usually charged a servicer’s fee. This fee is usually expressed:A . As an annual fraction of a percentage of each interest paymentB . As an annual fraction of a percent of the principal balance of the loans or based...

Identification and documentation of the controls and policies which address the risk management issues for each of the Standards is the necessary step for:A . Operational procedureB . Guideline procedureC . Organizational policyD . Self-assessment processView AnswerAnswer: D

Internal Control is:A . the process of controlling the impact of risk related events on a companyB . the process of planning the processes in order to avoid risk related events to a companyC . the process of designing the models to avoid risk related events on a companyD ....

The two most common types of dollar rolls are:A . Fixed-coupon and yield-maintenance agreementsB . Variable-coupon and yield-maintenance agreementsC . Fixed-coupon and Accounting agreementsD . Variable -coupon and Principal agreementsView AnswerAnswer: A