Canadian Securities Course Exam 1 (CSC1) Free Practice Test

Question 1

What bond should an advisorrecommend 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 long-term bond with a low coupon.

C. A short-term bond with a low coupon.

D. A long-term bond with a high coupon.

Correct Answer: B

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Question 2

When acting as a principal, how do investment dealers generate revenue?

A. Through brokerage changes.

B. Thrown tracers.

C. Through spreads on buy/sell prices.

D. Through commissions

Correct Answer: C

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Question 3

What is a characteristicof provincial savings bonds that distinguishes them from other provincial bonds?

A. They can &e purchased only by residents of the province.

B. They can be purchased at any time of the year.

C. Theyare backed by provincial assetspledged an security.

D. They do not have redemption rules.

Correct Answer: A

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Question 4

On what basis are government securities awarded atthe auction average yield?

A. Schedule III banks

B. Non-competitive lender.

C. Dealer market system

D. Open market

Correct Answer: B

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Question 5

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 involve the issuer determining when bonds are redeemed while purchase funds Involve the investor determining when the bonds are redeemed.

D. Sinking funds can redeem bonds only if they trade below a stipulated price while purchase runes do not have such a requirement.

Correct Answer: A

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Question 6

What type of unemployment is caused by normal labour turnover such as completing school or changing employment?

A. Frictional

B. Natural

C. Cyclical

D. Structural

Correct Answer: A

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Question 7

What action must an investment advisor take when submitting a trade ticket for a short sale?

A. Mark it as a margin order

B. Mark the sell-order ticket as a short sate

C. Obtain minimum margin amount from client

D. Verify the client canborrow the shares.

Correct Answer: B

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Question 8

Whataction is anexchange likely to take when the publicdistribution of a given securityhas dwindled to anunacceptablylow level?

A. Delisting

B. Suspension in trading

C. Hall in trading.

D. Delayed opening

Correct Answer: A

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Question 9

What is one key feature of futures?

A. Both parties to me contract must participate in The future Trade.

B. The buyer must pay theseller a feewhen the contract is entered Into.

C. Can trade on an exchange or over-the-counter market.

D. Parties are unable to offset the contract prior to expiration.

Correct Answer: C

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Question 10

Where docs primary responsibility for gatekeeping inthe securities industry reside?

A. With the market surveillance Division of CIRO.

B. With OS FI

C. With the CIRO dealer members and all Their employees

D. With the provincial securities regulators.

Correct Answer: C

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CSI Canadian Securities Course Exam 1 (CSC1) Free Practice Test