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| Section | Weight | Objectives |
|---|---|---|
| Derivatives | 10% | - Uses, risks and basic strategies - Options, futures and forwards |
| The Canadian Investment Marketplace | 16% | - Structure of Canadian financial system - Regulators and self-regulatory organizations - Market participants and roles |
| The Economy | 13% | - Impact of economic factors on investments - Monetary and fiscal policy - Macroeconomic principles and indicators |
| Pricing and Trading of Fixed-Income Securities | 11% | - Trading and settlement processes - Price-yield relationship - Valuation and pricing methods |
| Financing and Listing Securities | 7% | - Primary market and issuance process - Listing requirements and rules |
| Equity Transactions | 10% | - Trading mechanics and regulations - Order types and execution - Margin and short selling |
| Common and Preferred Shares | 13% | - Equity features and rights - Valuation and classification - Dividends and corporate actions |
| Regulation and Ethics | 8% | - Client suitability and disclosure - Code of conduct and ethical standards - Industry regulations and compliance |
| Features and Types of Fixed-Income Securities | 12% | - Types of fixed-income instruments - Characteristics, risks and benefits - Government and corporate bonds |
1. What is a characteristic of the FTSE Canada Universe Bond index?
A) Only bonds with a term to mammy of 30 days or more are eligible for inclusion.
B) Only government bonds ate included
C) It is a capitalization-weighted index.
D) US dollar bonds from Canadian issuers are included
2. What is unique to responsible investment?
A) A combination of a values and valuation-based approach to investing
B) ESG factors are standardized across the investment no industry.
C) It is unavailable with certain asset classes like segregated fundi
D) It bases investment decisions exclusively on environmental factors.
3. What action must an investment advisor take when submitting a trade ticket for a short sale?
A) Obtain minimum margin amount from client
B) Verify the client canborrow the shares.
C) Mark it as a margin order
D) Mark the sell-order ticket as a short sate
4. Which activity performed bythe Bank of Canada reflects role as the fiscal agent for the federal government?
A) Working with domestic and international regulatory bodies
B) Preserving the value of the Canadian dollar by keeping inflation low
C) Providing advice on debt Issuances based on its assessment of the capital markets.
D) Designing and distributing bank notes.
5. What will happen ita country's central government is at risk of defaulting on its debt?
A) Theexchange rate relative to other currencies will remain stable.
B) Lenders will decrease interest rates foreveryone
C) The exchange rate relative to other currencies willincrease
D) Lenders will increase interest rates for everyone
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: D |
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