CSC2 by CSI Actual Free Exam Questions And Answers

Question 1

How can an analyst use trend analysis to analyze a company's financial statements?

A. Analyze the ratios against companies in a wide a range of industries to see how the company is trending in the current economic cycle.

B. Computer the company's current ratios with its ratios from prior years to determine a trend.

C. Review the company's ratio over the past year, as they provide the best estimate of near-term performance and future trends.

D. Identity trends by selecting the lowest ratio for the base year, even if a loss is experienced, as it represents a good starting point for analyzing the growth in the ratios.

Discussion 0

Correct Answer: B Vote an answer

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Question 2

Institutional clients tend to be more sophisticated than retail clients. What benefit does this translate into for CIRO dealer members?

A. They can organize their firms based specifically on client needs.

B. They are subject to few, if any, investment restrictions.

C. They are free of fiduciary obligations to their clients.

D. They are permitted to make trades on a discretionary basis for their clients.

Discussion 0

Correct Answer: A Vote an answer

Question 3

An investor has the following separate stock transactions:

What is the investor ' s overall adjusted cost base per share? (Round two decimal points.)

A. $15.95

B. $15.83

C. $15.72

D. $16.38

Discussion 0

Correct Answer: A Vote an answer

Question 4

Where would the description d a company ' s fixed assets normally be found?

A. In the annual report

B. In the auditor report

C. In the statement of financial position.

D. In the notes to the financial statements

Discussion 0

Correct Answer: D Vote an answer

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Question 5

A fixed-rate bond was originally priced at $100 and paid $5 per year in interest. Currently, the bond is trading at $102.75. What is the impact on the current yield of coupon of the bond as a result of the change in price?

A. The coupon is lower than 5%.

B. The current yield is lower than 5%

C. The coupon is higher than 5%.

D. The current yield is higher man 5%.

Discussion 0

Correct Answer: B Vote an answer

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Question 6

What is the likely outcome at the end of a five-year term of a rate-reset preferred share if the issuer does not redeem the shares?

A. The shareholder exchanges the rate-reset preferred share for a fixed-rate preferred share.

B. The shareholder exchanges the rate-reset preferred share for a floating-rate preferred share

C. The shareholder exchanges the rate-reset preferred share for an unsecured bond

D. The shareholder exchanges the rate-reset preferred share for a specified number of common shares.

Discussion 0

Correct Answer: B Vote an answer

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Question 7

What investment becomes liquid when securitized?

A. Real estate.

B. Airport.

C. Fine art.

D. Gold.

Discussion 0

Correct Answer: A Vote an answer

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Question 8

Which factor would deter an investor from investing in a company's convertible preferred shares?

A. Long life of the conversion privilege.

B. High preferred dividend coverage ratio.

C. The equity per preferred share decreased to three times the value of assets.

D. Common stock outlook has been downgraded.

Discussion 0

Correct Answer: D Vote an answer

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Question 9

A business trust would typically purchase the underlying company assets of which type of operation?

A. Senior housing

B. Shopping centres

C. Restaurants

D. Industrial rentals

Discussion 0

Correct Answer: C Vote an answer

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CSI Canadian Securities Course Exam2 - CSC2 Exam Practice Test

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