CMFAS Securities Products M2 3

Question 1

What is a Singapore Government Security (SGS)?

Accepted Answer

A debt instrument issued by the Singapore Government

Answer

A type of corporate bond

Answer

A private equity fund

Answer

A type of insurance

Question 2

What is the difference between a secured and unsecured bond?

Accepted Answer

Secured bonds are backed by specific assets; unsecured bonds have no asset backing

Answer

They are identical

Answer

Unsecured bonds always pay higher interest

Answer

Secured bonds cannot be traded

Question 3

What is a Real Estate Investment Trust (REIT)?

Accepted Answer

A listed trust that invests in income-generating real estate

Answer

A real estate agency

Answer

A type of home loan

Answer

A construction company

Question 4

What is an Exchange-Traded Fund (ETF)?

Accepted Answer

A fund traded on the stock exchange that tracks an index or basket of assets

Answer

A savings account at an exchange

Answer

A private investment club

Answer

A type of insurance policy

Question 5

What does 'ex-dividend' mean?

Accepted Answer

The stock trades without entitlement to the declared dividend

Answer

Extra dividend payment

Answer

Exceptional dividend

Answer

Exclusive dividend for large investors

Question 6

What is a convertible bond?

Accepted Answer

A bond that can be converted into a specified number of shares

Answer

A bond that can only be bought once

Answer

A bond with a variable interest rate

Answer

A bond that matures in one year