ICWIM Exam Dumps : International Certificate in Wealth & Investment Management

TheUCITS (Undertakings for the Collective Investment in Transferable Securities)regulations mandate that fund managers provide a standardizedKey Investor Information Document (KIID)to investors. This document ensures that all retail investors receive clear and concise information about the fund’s objectives, risks, charges, and past performance.

Company accounts (A): UCITS does not govern corporate accounting.

Corporate actions (B): Corporate actions such as dividends or mergers are unrelated to UCITS.

Trade settlement (D): UCITS does not standardize trade settlement processes.

References:

International Certificate in Wealth & Investment Management: Regulations surrounding UCITS and KIIDs.

UCITS directives and their implementation across the European Union.

Understanding Negative Interest Rates:

Negative interest rate policies (NIRP) are used by central banks to stimulate the economy by discouraging banks from hoarding excess reserves.

Under NIRP, banks are charged interest for holding deposits with the central bank, incentivizing lending to businesses and consumers instead.

Elimination of Other Options:

A & B: Interest is still charged on loans, and consumers are not directly "paid" to borrow.

C: Discounting loan interest rates is a potential consequence but not the direct mechanism of NIRP.

References:

ICWIM Module 1: Economic Policy: Coverage of unconventional monetary policies like NIRP.

Global Currency Trading

The US dollar dominates the foreign exchange market due to its status as the global reserve currency.

It is heavily used in international trade, financial transactions, and as a benchmark currency.

Market Share

The US dollar is involved in approximately88% of all forex trades.

Other currencies like the euro, Japanese yen, and British pound have significant market shares but are far behind the US dollar.

ICWIM Study Guide, Chapter on Global Financial Markets: Highlights the US dollar as the most traded currency.

Bank for International Settlements (BIS)Forex Market Surveys: Confirms trading dominance of the US dollar.

References