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CSI Canadian Securities Course Exam 1 Sample Questions:
1. What is a Key assumption ofthe expectations theory?
A) investors buying a single long-term bond should be earning the same amount of interest as they would by buying two short-term bonds of equal combined duration.
B) Investors prefer short-term bonds because they are more liquid and less volatile in price
C) The yield curve represents me supply ofand demand tot bones of various terms, which ace primarily influenced by the bigger payers In each sector
D) Current short-term interest rates foreshadow future long-term rales.
2. When a futures contract is entered into, who sets the minimum initial margin rate?
A) Buyer
B) Seller
C) Exchange
D) investment dealer
3. What is theImpact from a security price increase on the investorholding a long margin position?
A) The investor will incur a loss equivalent lo the difference be-ween the purchase and sale price.
B) The investor must immediately pay interest on the excess margin amount
C) The investor has access to additional funds from the account available for withdrawal.
D) The Investor must provide additional funds to cover the price difference
4. An investor wants to gain exposure to the Canadian stock market with minimal risk exposure. What is the test financial instrument for this investor?
A) Canadian bank preferred shares.
B) Index exchange-trace fund.
C) Index-linked guaranteed investment certificate.
D) Call option.
5. 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?
A) Ba
B) B
C) C
D) Caa
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |



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