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Certified Financial Services Auditor (CFSA) Questions 221–225 (page: 46)

Updated On: 10-Feb-2026
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It provides additional living expenses when the home is unlivable, so home owners can continue to live comfortably. While the home is made livable, the homeowner policy will pay for items such as rented rooms at a hotel, restaurant meals, and laundry expenses. What is it?

  1. Dwelling
  2. Personal property
  3. Loss of use
  4. Medical coverage

Answer(s): C



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Personal liability covers claims for bodily injury or property damage caused by the insured. And, Medical payment provides a low level of medical payment to help avoid legal action between the insured and the injured part, regardless of whether or not the insured is legally liable for the incident. These are two major types of liability coverage provided by:

  1. Homeowner policies
  2. Term insurances
  3. Auto coverage policies
  4. Casualty insurance policies

Answer(s): A



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Foreign currency futures contracts may be legitimately traded either on a recognized futures exchange or in the , which generally involves trading between large institutions such as banks and corporations.

  1. Secondary security market
  2. Interbank market
  3. Over the counter market
  4. Dealers market

Answer(s): B



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These occur when two parties trade currencies at a mutually agreed upon exchange rate. One trader calls another trader asking for the price of a particular currency, and the second trader quotes both buying and selling prices for that currency. What are these?

  1. Spot transitions
  2. Forward transitions
  3. Backward transitions
  4. None of these

Answer(s): A



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Audits of foreign exchange transactions may include of the following objectives and tasks EXCEPT:

  1. Determine whether internal controls over the authorization of transaction are adequate
  2. Determine whether the valuation of transactions is properly calculated
  3. Determine whether net assets, dividends, interest, and taxes are properly calculated and recorded
  4. Determine that transactions are properly recorded on cash flow statement

Answer(s): D



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