CISI - intro to security and investment
exam questions and answers
3 functions of financial services - Answer -The investment chain, Risk, Payment
systems
The global financial centre index, evaluates ranking and future competitiveness based
on- - Answer -Business environment
human capital
infrastructure
financial sector development
reputation
Wholesale sector financial markets- what is the equity market - Answer -The trading of
quoted shares
Bond market - Answer -The trading of government, supranational or corporate debt
Foreign exchange - Answer -The trading of currencies
Derivatives - Answer -The trading of options, swaps, futures and forwards
Investment banks - Answer -Provide advice and arrange finance for companies that
want to float in the stock market, raise additional finance by issuing further shares and
bond or carry out mergers and acquisitions
What services do investment banks provide - Answer -Finance-raising and advisory
work, securities-trading in equities, treasury dealing for corporate clients in currencies,
investment management for sizeable investors
Custodian banks - Answer -They specialise in safe custody services, looking after
portfolios of shares and bonds on the behalf of others such as a fund manager, pension
fund or insurance company
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