[UPDATED] CSI CSC2 Certification Exam Questions [Q101-Q124]

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[UPDATED] CSI CSC2 Certification Exam Questions

Quickly and Easily Pass CSI Exam with CSC2 real Dumps

CSI CSC2 Exam Syllabus Topics:

Topic	Details
Topic 1	Investment Products: This section of the exam measures the skills of an Investment Products Analyst and covers fixed-income securities features, pricing, and trading; equity securities including common and preferred shares; derivatives including options, forwards, futures, rights and warrants; and the characteristics and uses of all these investment instruments in Canadian markets.
Topic 2	The Canadian Investment Marketplace: This section of the exam measures the skills of a Securities Industry Professional and covers the structure and operation of Canada’s investment marketplace. It includes the roles of investment dealers and financial intermediaries, capital market functions, financial instruments, and the complete Canadian regulatory environment with its regulatory bodies, principles of regulation, client remediation options, and ethical standards for financial services professionals.
Topic 3	The Corporation: This section of the exam measures the skills of a Corporate Finance Analyst and covers corporate structures, financial statements, disclosure requirements, investor rights, financing methods, capital raising processes, prospectus requirements, securities distribution, and exchange listing procedures for corporations.
Topic 4	Investment Analysis: This section of the exam measures the skills of a Research Analyst and covers both fundamental and technical analysis methods, including macroeconomic, industry and company analysis techniques, financial statement interpretation, ratio analysis, and security valuation approaches.
Topic 5	The Economy: This section of the exam measures the skills of an Economic Analyst and covers fundamental economic concepts including microeconomics and macroeconomics, economic growth measurement, business cycles, labor markets, interest rates, inflation, international trade, and both fiscal and monetary policy with emphasis on the Bank of Canada’s role and government policy challenges.
Topic 6	Analysis of Managed and Structured Products: This section of the exam measures the skills of an Investment Products Specialist and covers mutual funds, exchange-traded funds, alternative investments, structured products, and other managed products including their structures, regulations, features, risks, strategies, performance measurement, and tax implications within the Canadian investment landscape.
Topic 7	Additional Topics: This section of the exam measures the skills of a Wealth Management Professional and covers Canadian taxation systems, tax-advantaged accounts, fee-based account structures, retail client financial planning and estate planning, institutional client management, and ethical standards for financial advisors serving both individual and institutional clients.

NEW QUESTION 101
What is a characteristic of provincial savings bonds?

Backed by provincial assets

Available only at a certain time

Can be issued Internationally.

Mature every six months

NEW QUESTION 102
Which type of industry typically has a high inventory turnover ratio?

Wineries.

Distillers.

Steel manufacturers.

Cosmetics.

NEW QUESTION 103
What is an important consideration when developing an investment policy statement?

Is the result of a few simple inputs in the KYC process.

Follows a standardized list of components.

Only lists prohibited investments, as the portfolio manager has discretionary authority for acceptable investments.

Includes operating rules and guidelines.

NEW QUESTION 104
What is the normal shape of a yield curve?

Downward slope

inverted

Upward slops

Humped

NEW QUESTION 105
What type of return is adjusted for inflation?

Ex-ante

Nominal

Ex-post

Real

NEW QUESTION 106
Melanie has RRSP contribution room of $17,500 for the current tax year. Her husband, Jack, has RRSP contribution room of $5,000. What is the maximum tax-deductible contribution Melanie can make to her RRSP and/or a spousal RRSP?

$17,500.

$20,000.

$5,000.

$22,500.

NEW QUESTION 107
Franco purchased an ETF in his non-registered account, and his total adjusted cost base in year 1 was
$30,000. The ETF distributes income each year. And this reinvested distribution total was $1,750. The ETF also distributes a return of capital of $850. What would Franco’s total capital gain be if the sold the ETF for
$39,000?

$,250

$8,100

$6,400

$9,000

NEW QUESTION 108
Which type of ETF is also referred to as smart beta ETF?

Rules-based

Standard

Synthetic

Index-based

NEW QUESTION 109
Which type of sell side equity revenue is earned when a dealer acts in the capacity of an agent in clients trade?

Fees

Spreads

Interest

Commission

NEW QUESTION 110
When considering the overall investment objectives of liquid alternatives, what time horizon is the most appropriate for retail investors when investing in these funds?

Short-to medium-term

Short-term

Long-term

Medium-term

NEW QUESTION 111
What is the primary goal of a buy-side trader?

To provide pertinent and timely information to the head of fixed-income and equity markets.

To remain informed at all times of the portfolio manager’s detailed investment strategy.

To execute the portfolio manager’s trades at the best prices available in the market at the time of the trade.

To maintain good, professional relationships with sales and trading staff of dealers with whom the firm does business.

NEW QUESTION 112
What does historical evidence suggest about the performance of hedge funds when compared to traditional markets?

Hedge funds have underperformed traditional markets during periods of mild stress.

Hedge funds have outperformed traditional markets during periods of stable growth.

Hedge funds have mirrored traditional markets during periods of aggressive growth.

Hedge funds have outperformed traditional markets during periods of extreme stress.

NEW QUESTION 113
What is unique to responsible investment?

It is unavailable with certain asset classes like segregated fundi

ESG factors are standardized across the investment no industry.

A combination of a values and valuation-based approach to investing

It bases investment decisions exclusively on environmental factors.

NEW QUESTION 114
What is the main responsibility of the trustees of a mutual fund trust?

Portfolio trading and implementation of investment strategy.

Arranging cash distributions through dividend payments.

Day-to-day supervision of the investment portfolio.

Ensuring investments are in line with the fund’s investment objectives.

NEW QUESTION 115
What is a characteristic of the FTSE Canada Universe Bond Index?

It measures the total price return on bonds including realized and unrealized gains

It represents a full cross-section of government and corporate bonds.

It Includes Canadian investment-grade bonds with a term to maturity of one year or less.

It is an equal-weighted bond Index with each bond representing the same weight within the index.

NEW QUESTION 116
What legal authority does the done receive under the protection mandate in Quebec?

The authority to get the will probated and take all the necessary steps for its execution.

The authority to make decisions and to perform certain actions on behalf of the donor if they become incapacitated.

The authority to make decisions and to perform certain action on behalf of the donor while they are capable.

The authority to administrator and distribute the assets in the estate of a deceased after death.

In Quebec, the concept of a protection mandate (also known as a “mandate in case of incapacity”) allows a person (the donor) to appoint someone (the mandatary or donee) to act on their behalf if they become unable to do so. The legal authority granted under this mandate encompasses decision-making and taking actions on behalf of the donor when they are incapacitated, ensuring their personal, medical, and financial interests are protected.
* Purpose: The primary purpose of the protection mandate is to prepare for a scenario where the donor loses their mental or physical capacity to manage their own affairs. It is a proactive measure for managing one’s personal care and assets.
* Scope of Authority:
* The mandatary gains authority to make personal and financial decisions once the incapacity of the donor is confirmed, usually by a medical and legal process.
* The decisions may include managing bank accounts, paying bills, handling investments, and making healthcare decisions on behalf of the donor.
* Validation Requirement: The mandate only comes into effect after a formal validation process involving legal authorities to confirm the donor’s incapacity.
* Legal Framework: The Quebec Civil Code governs the creation and execution of a protection mandate, ensuring the mandatary acts in the best interest of the incapacitated individual.
* The protection mandate specifically applies in cases where the donor is incapacitated. It grants the donee authority to manage aspects of the donor’s life that they can no longer handle themselves.
* Options A, C, and D refer to different legal instruments or scenarios, such as probating a will (A), acting while the donor is capable (C), or estate administration after death (D), none of which are relevant under a protection mandate in Quebec.
Key Aspects of the Protection Mandate:Why Option B Is Correct:References from CSC Study Materials:
* Volume 2, Chapter 26: “Working with the Retail Client,” Section on Estate Planning, Powers of Attorney, and Living Wills.

NEW QUESTION 117
Which asset type is classified as a fixed-income asset for portfolio management purposes?

Money market securities

Preferred shares.

Convertible bonds.

Bonds with a maturity of one year or less.

NEW QUESTION 118
The consumer price index was 125.9 in December of last year and 123.0 in December of the year before What was the inflation rate last year?

2.36%

2.30%

0.98%

1.02%

NEW QUESTION 119
How can an analyst use trend analysis to analyze a company’s financial statements?

Computer the company’s current ratios with its ratios from prior years to determine a trend.

Review the company’s ratio over the past year, as they provide the best estimate of near-term performance and future trends.

Identity trends by selecting the lowest ratio for the base year, even if a loss is experienced, as it represents a good starting point for analyzing the growth in the ratios.

Analyze the ratios against companies in a wide a range of industries to see how the company is trending in the current economic cycle.

NEW QUESTION 120
The principle of retraction in retractable preferred shares is identical to what other security?

Callable preferred shares.

Retractable common shares

Redeemable preferred shares.

Retractable bonds and debentures

NEW QUESTION 121
Which statement best describes the Sharpe ratio?

It compares the return of the portfolio with the return of the market as a whole, relative to the portfolio’s risk as measured by its standard deviation.

It compares the return of the portfolio with the riskless rate of return, relative to the portfolio’s risk as measured by its standard deviation.

It compares the return of the portfolio with the return of the market as a whole, relative to the portfolio’s risk as measured by its beta.

It compares the return of the portfolio with the riskless rate of return, relative to the market’s risk as measured by its standard deviation.

NEW QUESTION 122
How is the ex-port real rate of return calculated?

The ex-ante nominal rate of return adjusted by portfolio beta.

The ex-post nominal rate of return minus the risk-free rate.

The ex-ante nominal rate of return minus the annual inflation rate.

The ex-post nominal rate of return minus the annual inflation rate.

NEW QUESTION 123
What is the normal shape of a yield curve?

Downward slope

inverted

Upward slops