Question 1

What is the action that the CentralBank takes to limitthe impact of increased foreign Interestrates on Interest rates in Canada?

Options :

A : Decrease interest rate to balance the risk of rising inflation.

B : Reduce Interest rales to reduce demand for borrowing.

C : increase short-term interest rates to maintain the value of currency.

D : Add a default premium to interest rates to protect lenders.

Answer: C

Question 2

What is one at the advantages for the company when shares are publicly listed?

Options :

A : Need to keep market participants informed.

B : Shareholders goodwill

C : Additional controls on management

D : Additional disclosure.

Answer: B

Question 3

What is a characteristicof provincial savings bonds that distinguishes them from other provincial bonds?

Options :

A : Theyare backed by provincial assetspledged an security.

B : They can &e purchased only by residents of the province.

C : They can be purchased at any time of the year.

D : They do not have redemption rules.

Answer: B

Question 4

What is the settlement date for Government of Canada bones?

Options :

A : One business day after the transaction

B : same day me transaction takes place.

C : Two business days after the transaction

D : Three business days after the transaction.

Answer: A

Question 5

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

Options :

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

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