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Reference: https://www.csi.ca/en/learning/courses/csc
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CSI Canadian Securities Course Exam2 Sample Questions:
Which ratio, when showing a decreasing trend, suggests declining operating efficiency?
- A. Debt/equity
- B. Return on common equity
- C. Dividend payout
- D. Price-earnings
Correct Answer: B 🗳️
What must happen for a redemption to be processed from a mutual fund?
- A. The offering price of the mutual fund must be calculated.
- B. Mutual funds representatives must submit the order within two business days of when the order is received from the client.
- C. Payment for redeemed securities must be within two business days after the NAVPS is determined.
- D. The client redeeming the mutual fund must receive a Fund facts document.
Correct Answer: C 🗳️
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If the government wants to stimulate the economy through fiscal policy, what action should it take?
- A. Decrease interest rates and increase money supply
- B. Decrease taxes and interest rates
- C. Decrease taxes and increase spending
- D. Increase spending and money supply
Correct Answer: C 🗳️
What is typically a key tax attribute of dividends?
- A. Dividends from preferred shares are ineligible tot dividend tax credit.
- B. Reinvested dividends are non-taxable to the shareholders.
- C. Stock dividends are treated differently than regular cash dividends for tax purposes.
- D. Dividend income is taxed more preferentially than interest income.
Correct Answer: D 🗳️
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What item compares the expected return of the market portfolio to the riskless rate?
- A. Variance
- B. Risk premium
- C. Alpha
- D. Beta
Correct Answer: B 🗳️
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