CSI Canadian Securities Course Exam2 - CSC2 FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

When a futures contract is entered into, who sets the minimum initial margin rate?

A. Buyer B. Exchange C. Seller D. investment dealer

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 2

What is the primary goal of a buy-side trader?

A. To provide pertinent and timely information to the head of fixed-income and equity markets. B. To remain informed at all times of the portfolio manager's detailed investment strategy. C. To execute the portfolio manager's trades at the best prices available in the market at the time of the trade. D. To maintain good, professional relationships with sales and trading staff of dealers with whom the firm does business.

Discussion 0

Correct Answer: C Vote an answer

Question 3

What bond should an advisor recommend to someone who wants to hold bonds and maximize potential cap- tai gams when interest rates are expected to fall?

A. A short-term bond with a high coupon. B. A short-term bond with a low coupon. C. A long-term bond with a low coupon. D. A long-term bond with a high coupon.

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 4

What type of return is adjusted for inflation?

A. Ex-post B. Real C. Nominal D. Ex-ante

Discussion 0

Correct Answer: B Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 5

Which exchange trades all financial and equity futures and options listed for trading in Canada?

A. Toronto Stock Exchange B. Canadian Securities Exchange C. Montreal Exchange D. ICE NGX Canada

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 6

What is the next step after designing an investment policy statement?

A. Developing the asset mix B. Determining investment objectives C. Determining investment constraints D. Outlining a list of acceptable and prohibited investments

Discussion 0

Correct Answer: A Vote an answer

Question 7

Which funds have a similar objective to those of balanced funds?

A. Dividend funds B. Fixed-income funds C. Target-date funds D. Asset allocation funds

Discussion 0

Correct Answer: D Vote an answer

Question 8

What is the difference between sinking funds and purchase funds concerning the redemption of bonds poor to maturity?

A. Sinking funds have mandated redemptions while purchase funds can redeem only upon certain market conditions. B. Sinking funds can redeem fie bones any time while purchase funds follow a prearranged schedule. C. Sinking funds can redeem bonds only if they trade below a stipulated price while purchase runes do not have such a requirement. D. Sinking funds involve the issuer determining when bonds are redeemed while purchase funds Involve the investor determining when the bonds are redeemed.

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 9

What responsibility falls on the buy-side portfolio manager?

A. To inform the trade about the market conditions and risks. B. To maintain constant contact with the investment dealer counterparties. C. To busy securities in the market on demand to maintain liquidity in a security. D. To provide pertinent market information to the department heads of various asset classes.

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 10

Which is a typical feature of investing in a listed private equity company?

A. Access to a wide range of skills and large number of personnel. B. Ability to act on legitimate insider information. C. Controls and limits on private equity management to protect existing investors. D. Average levels of liquidity.

Discussion 0

Correct Answer: A Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 11

Which document details certain rights of the investor and provides audited financial statements of a hedge fund structured as a limited partnership?

A. Information folder B. Offering memorandum C. Fund Facts document D. Managers discussion and analysis

Discussion 0

Correct Answer: B Vote an answer

Question 12

What type of return is calculated for a security held for 18 months if no adjustments to the return are made?

A. Effective rate of return. B. Annualized total return. C. Holding period return. D. Nominal rate of return.

Discussion 0

Correct Answer: C Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 13

What is one at the most important factors to determine how much of a product people buy or sell in a given marketplace?

A. Consumer satisfaction B. Government spending C. Maximized profits D. Price level

Discussion 0

Correct Answer: D Vote an answer

Explanation: Only visible for FreeCram members. You can sign-up / login (it's free).

Question 14

What document must be provided to an investor before they purchase a mutual fund?

A. The annual information form. B. A simplified prospectus. C. A Fund Facts document. D. The annual audited statements.

Discussion 0

Correct Answer: C Vote an answer