CSC2 Practice Questions

A.  

Market timing.

B.  

Interest rate anticipation.

C.  

Bond swap

D.  

Immunization

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.

A.  

After the dealer issues a trade execution notice.

B.  

One the custodian confirms the trade.

C.  

With the initial order.

D.  

Once the trade clears.

A.  

Focuses on large, liquid companies expected to perform well.

B.  

Searches for lesser-known, undervalued companies.

C.  

Chooses companies that have the greatest earnings momentum.

D.  

Identifies recurring patterns in historical prices for buying opportunities.

A.  

To match the performance of a reference index.

B.  

To maximize risk-adjusted returns.

C.  

To achieve absolute returns

D.  

To exceed the current rate of inflation.

A.  

They use physical commodities.

B.  

They use borrowed capital.

C.  

They use active management.

D.  

They use derivatives.

A.  

CESG payments are made directly to the RESP firm.

B.  

CESG may be earned until the beneficiary is 21 years of age.

C.  

The maximum CESG per beneficiary is $2,500 annually.

D.  

The maximum lifetime CESG per beneficiary is $8,500.

A.  

Investors will reduce the adjusted cost base of their holdings in the fund.

B.  

Each investor will have to report taxable income of $1.50 per share.

C.  

The net asset value per share will drop $1.50 as a result of the distribution.

D.  

The mutual fund will have to declare taxable income of $0.75 per share.

A.  

Airport.

B.  

Real estate.

C.  

Fine art.

D.  

Gold.

A.  

Not verifying if a proposed transaction is suitable for a client

B.  

Borrowing a client ' s excess funds held in their account

C.  

Failing to disclose a conflict of interest to the client

D.  

Not changing account information when the client ' s needs change