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CSI Canadian Securities Course Exam 1 Sample Questions:
1. What is a Key assumption ofthe expectations theory?
A) Current short-term interest rates foreshadow future long-term rales.
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) 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.
2. What is one at the advantages for the company when shares are publicly listed?
A) Need to keep market participants informed.
B) Additional controls on management
C) Additional disclosure.
D) Shareholders goodwill
3. Whataction is anexchange likely to take when the publicdistribution of a given securityhas dwindled to anunacceptablylow level?
A) Delisting
B) Suspension in trading
C) Hall in trading.
D) Delayed opening
4. Which statutory right allowsa purchaser to caned their order if a prospectus has a misrepresentation?
A) Right of rescission.
B) Right of action for damages
C) Right of amended prospectus delivery
D) Right of withdrawal.
5. On what is the dividend rate for rate-reset preferred shares based?
A) The Dank at Canada's overnight rate plus a spread
B) The preferred share issuer's senior bonds plus a spread
C) The three-month Government of Canada Treasury bill yield plus a spread
D) The five-year Government of Canada bond yield plus a spread
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: D |


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