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Free PDF Quiz 2026 High Hit-Rate CSI Latest CSC2 Exam Papers
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CSI CSC2 Exam Syllabus Topics:
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CSI Canadian Securities Course Exam2 Sample Questions (Q37-Q42):
NEW QUESTION # 37
What do the returns on treasury bills often represent?
- A. Bank prime rate.
- B. Risk-free rate
- C. Federal funds rate
- D. Inflation rate
Answer: B
Explanation:
Detailed Explanation:Treasury bills (T-bills) are short-term government debt instruments with minimal risk of default. Their returns are often used as a proxy for therisk-free ratein financial analysis, as they represent the theoretical return on an investment with zero credit risk. The risk-free rate is critical for discounting cash flows and comparing returns on various investments.
Other options:
* A. Bank prime rateis the interest rate commercial banks charge their most creditworthy customers.
* B. Inflation rateis unrelated to the direct return on T-bills, though it impacts real returns.
* D. Federal funds rateapplies in the U.S. to interbank lending, not directly to T-bills.
* CSC Volume 1 (2023 Edition): Chapter on the financial markets, inflation, and trade settlement.
* CSC Volume 2 (2024 Edition): Sections on portfolio analysis and risk-free securities.
References:
NEW QUESTION # 38
What is the Sharpe ratio given the following information?
- A. 0
- B. 1.5
- C. 0.4
- D. 2.5
Answer: B
NEW QUESTION # 39
What actions can a government take to lower a $40 billion national deficit?
- A. Increase taxation
- B. Decrease taxation
- C. Increase interest rates.
- D. Increase government spending.
Answer: A
NEW QUESTION # 40
What actions can a government take to lower a $40 billion national deficit?
- A. Increase taxation
- B. Decrease taxation
- C. Increase interest rates.
- D. Increase government spending.
Answer: A
Explanation:
To reduce a national deficit, governments canincrease taxationto generate more revenue. This measure, combined with controlled spending, helps reduce the shortfall between revenues and expenditures.
* B. Increase government spending: This would increase the deficit further unless matched by revenue increases.
* C. Decrease taxation: This would reduce revenue and worsen the deficit.
* D. Increase interest rates: This impacts monetary policy and borrowing costs but does not directly reduce a fiscal deficit.
NEW QUESTION # 41
A business trust would typically purchase the underlying company assets of which type of operation?
- A. Industrial rentals
- B. Senior housing
- C. Restaurants
- D. Shopping centres
Answer: C
Explanation:
Abusiness trusttypically acquires the operating assets of businesses such asrestaurants, which generate predictable and steady cash flows. Business trusts focus on distributing income to unitholders, and restaurant operations align well with this goal due to their recurring revenue models.
* Explanation of Options:
* A. Senior Housing: More common for real estate investment trusts (REITs), not business trusts.
* B. Restaurants: Correct. Restaurants are suitable for business trusts because of their stable cash flow potential.
* C. Industrial Rentals: Typically under REITs, not business trusts.
* D. Shopping Centres: Also more commonly associated with REITs.
References:
* CSC Volume 2, Chapter 22: Business trusts and the types of operations they typically invest in.
NEW QUESTION # 42
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