4. Which of the following are suspicious transactions/situations of money laundering? 1. Buying large amount of securities and settling in cash. II. Holding large amount of idle fund in the bank account. III. Buying and selling large amount of foreign currencies through margin trading. A. I and II only B. I and III only C. II and III only D. I, II and III 1. Kenny is a CFPM certificant. He met with a potential client Mr. Lam last week. He has just finished analyzing Mr. Lam's financial situation. He is now preparing a recommendation and a scope of engagement to Mr. Lam. He is not sure what should be included in a scope of engagement. Knowing Kenny's situation, his colleagues Sandy and May have the following responses. Sandy: You should have prepared and presented the scope of engagement to your client before you provide any service and not after you finish analyzing your client's situation. May: You should tell your client how you are going to charge him for you service in the scope of engagement. Are Sandy's and May's responses correct? Sandy's response May's response A. Correct Correct B. Correct Incorrect C. Incorrect Correct D. Incorrect Incorrect 2. Which of the following are advantages of having a written financial plan? 1. The financial planner can present to his client in a more organized flow. II. It serves as a record for both the client and the financial planner. III. Client can study the plan on his own time after the financial planner has presented it to him. A. I and II only B. I and III only C. II and III only D. I, II and III 3. Lily receives a phone call from her client Mr. Tang. Mr. Tang tells Lily he has been unemployed for 2 months and said he would not be able to contribute to the savings plan he started 3 years ago. Which of the following is the most appropriate action for Lily to take? A. Set up a meeting to review the situation with Mr. Tang immediately. B. Stop the payment for the savings plan immediately if the plan has an option to do so. C. Cash out the savings plan immediately for Mr. Tang if it has an option to do so. D. Ask Mr. Tang not to do anything because Lily has scheduled to meet with him 2 months later