CSC (Canadian Securities Course) Exam 1
(Questions & Answers)2023/2024||Verified
Answers
1.
The CPI was 123.5 in the previous period and 128.6 in the current period. Calculate
the approximate inflation rate during this period.
Student Value Correct Feedback
Response Answer
A. 3.97%
B. 4.13% 100%
C. 5.10%
D. 6.05%
General The rate if found by (CPI current minus CPI previous)/CPI previous ×
Feedback: 100. For this example question: (128.6 – 123.5)/ 123.5 x 100 = 4.13.
Text reference: Chapter 4: Economic Principles.
Score: 1/1
2.
Which equity index uses a similar price calculation method as the Dow Jones
Industrial Average?
Student Value Correct Feedback
Response Answer
A. FTSE 100.
B. Nikkei 225. 100%
C. The CAC 40.
D. The NSYE
Composite
Index.
General The Nikkei 225 weighs the stock’s price and not its capitalization to
Feedback: calculate the index value. Text reference: Chapter 8: Equity
Securities: Common and Preferred Shares.
Score: 1/1
3.
While reading the newspaper you notice that retail sales and industrial production
,is up, while spot commodity prices and manufacturers’ orders for automobiles are
down. What does this tell you about the current phase of the business cycle?
Student Value Correct Feedback
Response Answer
A. The economy
, Student Value Correct Feedback
Response Answer
B. The economy
is in an
expansion but
will move into
a recession in
the near
future.
C. The economy 0%
is in an
expansion
that will
continue for
the near
future.
D. The economy
is in a
recession but
will move into
a trough in the
near future.
General Retail sales and industrial production are coincident indicators. If they
Feedback: are climbing, then the economy is in an expansion. However commodity
prices and orders for automobiles are leading indicators. If they are
falling, the economy will likely move into recession in the future. Text
reference: Chapter 4: Economic Principles.
Score: 0/1
4.
Karim has been looking for a job for over a year since he graduated from college.
He has decided to give up and apply for university, hoping that will improve his
chances of getting a job. What impact will this have on the labour statistics?
Student Value Correct Feedback
Response Answer
A. Decrease the
number of
employed.
B. Decrease the 100%
number of
unemployed.
C. Increase the
number of
unemployed.
D. No impact on
labour
, Student Value Correct Feedback
Response Answer
statistics as
he has never
worked.
General Discouraged workers are those individuals that are available and willing
Feedback: to work but cannot find jobs and have not made specific efforts to find a
job within the previous month, and so are not included as part of the
labour force. The disappearance of these “discouraged unemployed
workers” can produce an artificially low unemployment rate. Text
reference: Chapter 4: Economic Principles.
Score: 1/1
5.
Charlie bought one FBK Jan 50 call for a total cost of $245. What price would the
shares of FBK have to be trading at expiration before he can start generating a
profit from the strategy?
Student Value Correct Feedback
Response Answer
A. Above
$50.00.
B. Above 100%
$52.45.
C. Below
$47.55.
D. Below
$50.00.
General At expiration, the position is generating a profit above $52.45: $50 +
Feedback: $2.45 = $52.45. Text reference: Chapter 10: Derivatives.
Score: 1/1
6.
Ashlyn buys 3,000 shares of EWY Inc. on margin, a security not eligible for reduced
margin. She pays $1.85 per share. What amount of margin will she have to put up?
Student Value Correct Feedback
Response Answer
A. $2220
B. $2775 0%
C. $3330
(Questions & Answers)2023/2024||Verified
Answers
1.
The CPI was 123.5 in the previous period and 128.6 in the current period. Calculate
the approximate inflation rate during this period.
Student Value Correct Feedback
Response Answer
A. 3.97%
B. 4.13% 100%
C. 5.10%
D. 6.05%
General The rate if found by (CPI current minus CPI previous)/CPI previous ×
Feedback: 100. For this example question: (128.6 – 123.5)/ 123.5 x 100 = 4.13.
Text reference: Chapter 4: Economic Principles.
Score: 1/1
2.
Which equity index uses a similar price calculation method as the Dow Jones
Industrial Average?
Student Value Correct Feedback
Response Answer
A. FTSE 100.
B. Nikkei 225. 100%
C. The CAC 40.
D. The NSYE
Composite
Index.
General The Nikkei 225 weighs the stock’s price and not its capitalization to
Feedback: calculate the index value. Text reference: Chapter 8: Equity
Securities: Common and Preferred Shares.
Score: 1/1
3.
While reading the newspaper you notice that retail sales and industrial production
,is up, while spot commodity prices and manufacturers’ orders for automobiles are
down. What does this tell you about the current phase of the business cycle?
Student Value Correct Feedback
Response Answer
A. The economy
, Student Value Correct Feedback
Response Answer
B. The economy
is in an
expansion but
will move into
a recession in
the near
future.
C. The economy 0%
is in an
expansion
that will
continue for
the near
future.
D. The economy
is in a
recession but
will move into
a trough in the
near future.
General Retail sales and industrial production are coincident indicators. If they
Feedback: are climbing, then the economy is in an expansion. However commodity
prices and orders for automobiles are leading indicators. If they are
falling, the economy will likely move into recession in the future. Text
reference: Chapter 4: Economic Principles.
Score: 0/1
4.
Karim has been looking for a job for over a year since he graduated from college.
He has decided to give up and apply for university, hoping that will improve his
chances of getting a job. What impact will this have on the labour statistics?
Student Value Correct Feedback
Response Answer
A. Decrease the
number of
employed.
B. Decrease the 100%
number of
unemployed.
C. Increase the
number of
unemployed.
D. No impact on
labour
, Student Value Correct Feedback
Response Answer
statistics as
he has never
worked.
General Discouraged workers are those individuals that are available and willing
Feedback: to work but cannot find jobs and have not made specific efforts to find a
job within the previous month, and so are not included as part of the
labour force. The disappearance of these “discouraged unemployed
workers” can produce an artificially low unemployment rate. Text
reference: Chapter 4: Economic Principles.
Score: 1/1
5.
Charlie bought one FBK Jan 50 call for a total cost of $245. What price would the
shares of FBK have to be trading at expiration before he can start generating a
profit from the strategy?
Student Value Correct Feedback
Response Answer
A. Above
$50.00.
B. Above 100%
$52.45.
C. Below
$47.55.
D. Below
$50.00.
General At expiration, the position is generating a profit above $52.45: $50 +
Feedback: $2.45 = $52.45. Text reference: Chapter 10: Derivatives.
Score: 1/1
6.
Ashlyn buys 3,000 shares of EWY Inc. on margin, a security not eligible for reduced
margin. She pays $1.85 per share. What amount of margin will she have to put up?
Student Value Correct Feedback
Response Answer
A. $2220
B. $2775 0%
C. $3330
