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CSC1 Practice Questions

Canadian Securities Course Exam 1

Last Update 3 days ago
Total Questions : 100

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Question # 11

The principleof retraction in retractable preferredshares is identical to what other security?

Options:

A.  

Callable preferred shares.

B.  

Retractable common shares

C.  

Redeemable preferred shares.

D.  

Retractable bonds and debentures

Discussion 0
Question # 12

Which trend affecting the financialservices industry has resulted inthe significant use ETFs?

Options:

A.  

The rise of financialtechnology companies

B.  

The shift towardsdefined contribution plans

C.  

The emergence of cryptocurrency

D.  

The popularity of robo-advisors

Discussion 0
Question # 13

Brice purchased a $10.000 real return bond. The bond has a 10-year term to maturity and an annual coupon of 5% paid semi-annually. If the Consumer Price index increases by 0.8% over the next six months, what is the amount of Brice's first coupon payment?

Options:

A.  

$2920

B.  

$252

C.  

$250

D.  

$254

Discussion 0
Question # 14

An investor feels unfairly treatedby a stockbroker regarding a setof transactions. After a discussion of the situation Between the investor and the member, the investor and the member, the investor is still dissatisfied. What is the best requestthat the investor could make to seek compensation?

Options:

A.  

A rescission of the objectionable trades.

B.  

A payment from the Canadian investor Protection Fund.

C.  

An Independent arbitration.

D.  

An investigation by the Ombudsman for Banking Service and investments.

Discussion 0
Question # 15

ABT Ltd. is currently trading at $65. An investor buys five ABT July 55 put options for $2each. Ignoring commissions, what price must ABT Ltd. common shares trade at for theinvestor to break even on her put options?

Options:

A.  

$55

B.  

$57

C.  

$53

D.  

$63

Discussion 0
Question # 16

Which security is issued by a company lo existing shareholders allowing, them to subscribe for additionalshares over a period of severalyears?

Options:

A.  

Stock options.

B.  

Long-term equity anticipation security.

C.  

Rights.

D.  

Warrants

Discussion 0
Question # 17

An emerging Canadian company is exploring the possibility of using hotwater springs to produce clear energy forremote rural communities.The company has strong human resource capital and few assets, and raised SI 20,000 through the Capital Pool Company program. Which option is best for this company to continue maximizing public exposure and raising capital?

Options:

A.  

Crowfunding

B.  

Escrowing shares

C.  

offering a greenshee option

D.  

Filling disclosure documents with SEDAR+.

Discussion 0
Question # 18

Using the Moody’s long-term rating scale, which rating is best suited for an obligation that is not yetin default, out is considered speculative andsubject to very high credit risk?

Options:

A.  

C

B.  

B

C.  

Ba

D.  

Caa

Discussion 0
Question # 19

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?

Options:

A.  

A short-term bond with a low coupon.

B.  

A long-term bond with a high coupon.

C.  

A short-term bond with a high coupon.

D.  

A long-term bond with a low coupon.

Discussion 0
Question # 20

Why does thefederalgovernment borrow from the capital markets?

Options:

A.  

To raise capital for streets, servers and waterworks

B.  

To support The capital markets

C.  

To fund spending In excess of revenues

D.  

To support the expansion of corporations

Discussion 0
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