Free CSI CSC1 Exam Questions

Question 1

What is the difference between sinking funds and purchase funds concerning the redemption of bonds poor to maturity?

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 2

A large number of well-trained, willing-to-work individuals have given up trying to find employment. All else being equal, how will the labor market indicators be affected by this event.

A : A decrease in the structural unemployment rate.

B : A decrease in the overall unemployment rate.

C : An increase in the participation rate.

D : An increase in the labour force.

Answer: B

Question 3

When acting as a principal, how do investment dealers generate revenue?

A : Through commissions

B : Thrown tracers.

C : Through brokerage changes.

D : Through spreads on buy/sell prices.

Answer: D

Question 4

ABT Ltd. is currently trading at $65. An investor buys five ABT July 55 put options for $2each. Ignoring commissions, what price must ABT Ltd. common shares trade at for theinvestor to break even on her put options?

A : $55

B : $57

C : $53

D : $63

Answer: C

Question 5