Question 1

Where docs primary responsibility for gatekeeping inthe securities industry reside?

Options :

A : With OS FI

B : With the market surveillance Division of CIRO.

C : With the CIRO dealer members and all Their employees

D : With the provincial securities regulators.

Answer: C

Question 2

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

Answer: C

Question 3

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 4

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

Question 5

What is the action that the CentralBank takes to limitthe impact of increased foreign Interestrates on Interest rates in Canada?

Options :

A : Decrease interest rate to balance the risk of rising inflation.

B : Reduce Interest rales to reduce demand for borrowing.

C : increase short-term interest rates to maintain the value of currency.

D : Add a default premium to interest rates to protect lenders.

Answer: C

Confidently Practice Online with Free CSC1 Exam Cram

Buying Options: