All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A participatory interest in a unit trust is an example of which kind of financial product?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A collective investment scheme.Correct
- b) A short-term insurance policy.
- c) A bank current account.
- d) A funeral assistance benefit.
Why this is the answer
A unit trust is a collective investment scheme: investors' money is pooled and a participatory interest represents each investor's share. It is not insurance or a bank account.
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