Question 1

Who in a sell-side firm is responsible for structuring new debt issues and bringing them to the primary market?

Options :

A : Trader

B : Investment banker

C : Portfolio manager

D : Sales representative

Answer: B

Question 2

A large number of well-trained, willing-to-work individuals have given up trying to find employment. All else being equal, how will the labor market indicators be affected by this event.

Options :

A : A decrease in the structural unemployment rate.

B : A decrease in the overall unemployment rate.

C : An increase in the participation rate.

D : An increase in the labour force.

Answer: B

Question 3

What is one at the advantages for the company when shares are publicly listed?

Options :

A : Need to keep market participants informed.

B : Shareholders goodwill

C : Additional controls on management

D : Additional disclosure.

Answer: B

Question 4

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

Options :

A :

Sinking funds have mandated redemptions while purchase funds can redeem only upon certain market conditions.

B :

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

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 fie bones any time while purchase funds follow a prearranged schedule.

Answer: A

Question 5

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

Options :

A : Theyare backed by provincial assetspledged an security.

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

C : They can be purchased at any time of the year.

D : They do not have redemption rules.

Answer: B

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