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

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 3

What is the settlement date for Government of Canada bones?

Options :

A : One business day after the transaction

B : same day me transaction takes place.

C : Two business days after the transaction

D : Three business days after the transaction.

Answer: A

Question 4

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

Question 5

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

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