Canadian Securities Course Exam questions |\ |\ |\ |\ |\
with correct answers |\ |\
What does an Investment Dealer do? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Acts as intermediaries between investors and users of capital.
|\ |\ |\ |\ |\ |\ |\ |\
When a Investment Dealer is acting as Primary, what are they
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
doing? - CORRECT ANSWERS ✔✔Selling securities from their own
|\ |\ |\ |\ |\ |\ |\ |\ |\
inventory. Make money via spread/underwriting. |\ |\ |\ |\
When an investment dealer is acting as agents, what are they
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
doing? - CORRECT ANSWERS ✔✔Facilitating a trade between a
|\ |\ |\ |\ |\ |\ |\ |\ |\
buyer and seller, without owning the security. They make money
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
via commissions.
|\
What are the three types of Investment dealers? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Retail firms, Institutional firms, and Integrated firms.
|\ |\ |\ |\ |\ |\ |\
Give a brief description of retail firms. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Includes full service investment dealers and self directed |\ |\ |\ |\ |\ |\ |\ |\
brokers.
Give a brief description of Institutional firms. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔They serve institutional clients and organizations that trade
|\ |\ |\ |\ |\ |\ |\ |\ |\
large volumes like pension funds.
|\ |\ |\ |\
,Give a brief description of Integrated firms. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Offer products and services that participate in both retail and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
institutional markets. Most firms underwrite debt and equity issues |\ |\ |\ |\ |\ |\ |\ |\
and are active in the secondary markets.
|\ |\ |\ |\ |\ |\ |\
What are the roles of front, middle, and back offices of an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
investment dealer firm? - CORRECT ANSWERS ✔✔Front Office: |\ |\ |\ |\ |\ |\ |\ |\
Portfolio management, Trading, Sales, Marketing.
|\ |\ |\ |\
Middle Office: Compliance, Accounting, Audits, Legal
|\ |\ |\ |\ |\
Back Office: Trade settlement.
|\ |\ |\
What services do investment dealers provide? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔They provide advice about new issues, They act as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
market makers, They buy stocks as principal becoming more
|\ |\ |\ |\ |\ |\ |\ |\ |\
competitive in serving their institutional clients, They add liquidity |\ |\ |\ |\ |\ |\ |\ |\ |\
to secondary markets which enhances the primary markets.
|\ |\ |\ |\ |\ |\ |\
What is a Market Maker - CORRECT ANSWERS ✔✔A trader that
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
maintains liquidity in securities markets by taking large positions
|\ |\ |\ |\ |\ |\ |\ |\ |\
to enhance liquidity and sooth out price distortions.
|\ |\ |\ |\ |\ |\ |\
What does the Clearing and Depository Services (CDS) do? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔It clears security transactions daily using a
|\ |\ |\ |\ |\ |\ |\ |\
process called netting to establish and confirm a credit or debit
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
position.
What are the three types of chartered banks? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Schedule I,II, & III banks |\ |\ |\ |\ |\
,Describe Schedule I Banks - CORRECT ANSWERS ✔✔Banks such as
|\ |\ |\ |\ |\ |\ |\ |\ |\
TD, RBC. They offer loans, savings and deposits from businesses
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and consumers. They also sell mutual funds and other investment
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
options, and mortgages. |\ |\
Describe Schedule II Banks - CORRECT ANSWERS ✔✔Such as Citi
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Canada, AMEX Canada. Are foreign bank subsidiaries, They do
|\ |\ |\ |\ |\ |\ |\ |\ |\
everything schedule I banks do plus commercial loans to business,
|\ |\ |\ |\ |\ |\ |\ |\ |\
issue financial paper in money markets, take deposits for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
businesses and sell mutual funds and other investments. |\ |\ |\ |\ |\ |\ |\
Describe Schedule III Banks - CORRECT ANSWERS ✔✔Such as
|\ |\ |\ |\ |\ |\ |\ |\ |\
Deutsche, Comerica. Most are full service foreign bank branches of
|\ |\ |\ |\ |\ |\ |\ |\ |\
foreign banks and accept deposits, not usually lending.
|\ |\ |\ |\ |\ |\ |\ |\
What type of bank has strict ownership rules? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Schedule I banks ( a single shareholder cannot own
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more than 20%).|\ |\
What is a credit union? - CORRECT ANSWERS ✔✔They often cater
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
to member-savers from common interest groups and provide
|\ |\ |\ |\ |\ |\ |\ |\
deposit taking services, lending, mortgages, insurance, mutual
|\ |\ |\ |\ |\ |\ |\
funds, debt and credit cards.
|\ |\ |\ |\
What role do insurance companies play in the financial markets? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔They offer term deposits and GIC's,
|\ |\ |\ |\ |\ |\ |\ |\
segregated funds and other investment products. |\ |\ |\ |\ |\
, What is the most important aspect of insurance companies? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Underwriting (the business of evaluating
|\ |\ |\ |\ |\ |\ |\
risk).
What other things do insurance companies have to offer? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Life insurance, home, auto, and
|\ |\ |\ |\ |\ |\ |\
commercial insurance. |\
What is a trust company? - CORRECT ANSWERS ✔✔They act as a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
trustee in charge of corporate and individual assets such as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
property. stocks, and bonds. |\ |\ |\
What is the purpose of an investment fund? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔They are companies or trusts that sell shares or units to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
public and invest the proceeds in a diverse securities portfolio.
|\ |\ |\ |\ |\ |\ |\ |\ |\
What are the two types of government-related pension funds? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Defined Benefit (provides employees with
|\ |\ |\ |\ |\ |\ |\
a pre-determined specified payment amount when they retire) and
|\ |\ |\ |\ |\ |\ |\ |\
Defined Contribution plans (Allows employees to contribute to a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
plan that invests funds over time).
|\ |\ |\ |\ |\
What is a Robo-Advisor? - CORRECT ANSWERS ✔✔It provides
|\ |\ |\ |\ |\ |\ |\ |\ |\
clients with advice with goal based online investment
|\ |\ |\ |\ |\ |\ |\ |\
management, creates portfolios using algos based on theory and |\ |\ |\ |\ |\ |\ |\ |\ |\
questions. Usually built with ETF's. |\ |\ |\ |\
with correct answers |\ |\
What does an Investment Dealer do? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Acts as intermediaries between investors and users of capital.
|\ |\ |\ |\ |\ |\ |\ |\
When a Investment Dealer is acting as Primary, what are they
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
doing? - CORRECT ANSWERS ✔✔Selling securities from their own
|\ |\ |\ |\ |\ |\ |\ |\ |\
inventory. Make money via spread/underwriting. |\ |\ |\ |\
When an investment dealer is acting as agents, what are they
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
doing? - CORRECT ANSWERS ✔✔Facilitating a trade between a
|\ |\ |\ |\ |\ |\ |\ |\ |\
buyer and seller, without owning the security. They make money
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
via commissions.
|\
What are the three types of Investment dealers? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Retail firms, Institutional firms, and Integrated firms.
|\ |\ |\ |\ |\ |\ |\
Give a brief description of retail firms. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Includes full service investment dealers and self directed |\ |\ |\ |\ |\ |\ |\ |\
brokers.
Give a brief description of Institutional firms. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔They serve institutional clients and organizations that trade
|\ |\ |\ |\ |\ |\ |\ |\ |\
large volumes like pension funds.
|\ |\ |\ |\
,Give a brief description of Integrated firms. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Offer products and services that participate in both retail and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
institutional markets. Most firms underwrite debt and equity issues |\ |\ |\ |\ |\ |\ |\ |\
and are active in the secondary markets.
|\ |\ |\ |\ |\ |\ |\
What are the roles of front, middle, and back offices of an
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
investment dealer firm? - CORRECT ANSWERS ✔✔Front Office: |\ |\ |\ |\ |\ |\ |\ |\
Portfolio management, Trading, Sales, Marketing.
|\ |\ |\ |\
Middle Office: Compliance, Accounting, Audits, Legal
|\ |\ |\ |\ |\
Back Office: Trade settlement.
|\ |\ |\
What services do investment dealers provide? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔They provide advice about new issues, They act as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
market makers, They buy stocks as principal becoming more
|\ |\ |\ |\ |\ |\ |\ |\ |\
competitive in serving their institutional clients, They add liquidity |\ |\ |\ |\ |\ |\ |\ |\ |\
to secondary markets which enhances the primary markets.
|\ |\ |\ |\ |\ |\ |\
What is a Market Maker - CORRECT ANSWERS ✔✔A trader that
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
maintains liquidity in securities markets by taking large positions
|\ |\ |\ |\ |\ |\ |\ |\ |\
to enhance liquidity and sooth out price distortions.
|\ |\ |\ |\ |\ |\ |\
What does the Clearing and Depository Services (CDS) do? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔It clears security transactions daily using a
|\ |\ |\ |\ |\ |\ |\ |\
process called netting to establish and confirm a credit or debit
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
position.
What are the three types of chartered banks? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Schedule I,II, & III banks |\ |\ |\ |\ |\
,Describe Schedule I Banks - CORRECT ANSWERS ✔✔Banks such as
|\ |\ |\ |\ |\ |\ |\ |\ |\
TD, RBC. They offer loans, savings and deposits from businesses
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
and consumers. They also sell mutual funds and other investment
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
options, and mortgages. |\ |\
Describe Schedule II Banks - CORRECT ANSWERS ✔✔Such as Citi
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Canada, AMEX Canada. Are foreign bank subsidiaries, They do
|\ |\ |\ |\ |\ |\ |\ |\ |\
everything schedule I banks do plus commercial loans to business,
|\ |\ |\ |\ |\ |\ |\ |\ |\
issue financial paper in money markets, take deposits for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
businesses and sell mutual funds and other investments. |\ |\ |\ |\ |\ |\ |\
Describe Schedule III Banks - CORRECT ANSWERS ✔✔Such as
|\ |\ |\ |\ |\ |\ |\ |\ |\
Deutsche, Comerica. Most are full service foreign bank branches of
|\ |\ |\ |\ |\ |\ |\ |\ |\
foreign banks and accept deposits, not usually lending.
|\ |\ |\ |\ |\ |\ |\ |\
What type of bank has strict ownership rules? - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔Schedule I banks ( a single shareholder cannot own
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
more than 20%).|\ |\
What is a credit union? - CORRECT ANSWERS ✔✔They often cater
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
to member-savers from common interest groups and provide
|\ |\ |\ |\ |\ |\ |\ |\
deposit taking services, lending, mortgages, insurance, mutual
|\ |\ |\ |\ |\ |\ |\
funds, debt and credit cards.
|\ |\ |\ |\
What role do insurance companies play in the financial markets? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔They offer term deposits and GIC's,
|\ |\ |\ |\ |\ |\ |\ |\
segregated funds and other investment products. |\ |\ |\ |\ |\
, What is the most important aspect of insurance companies? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Underwriting (the business of evaluating
|\ |\ |\ |\ |\ |\ |\
risk).
What other things do insurance companies have to offer? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Life insurance, home, auto, and
|\ |\ |\ |\ |\ |\ |\
commercial insurance. |\
What is a trust company? - CORRECT ANSWERS ✔✔They act as a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
trustee in charge of corporate and individual assets such as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
property. stocks, and bonds. |\ |\ |\
What is the purpose of an investment fund? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔They are companies or trusts that sell shares or units to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
public and invest the proceeds in a diverse securities portfolio.
|\ |\ |\ |\ |\ |\ |\ |\ |\
What are the two types of government-related pension funds? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Defined Benefit (provides employees with
|\ |\ |\ |\ |\ |\ |\
a pre-determined specified payment amount when they retire) and
|\ |\ |\ |\ |\ |\ |\ |\
Defined Contribution plans (Allows employees to contribute to a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
plan that invests funds over time).
|\ |\ |\ |\ |\
What is a Robo-Advisor? - CORRECT ANSWERS ✔✔It provides
|\ |\ |\ |\ |\ |\ |\ |\ |\
clients with advice with goal based online investment
|\ |\ |\ |\ |\ |\ |\ |\
management, creates portfolios using algos based on theory and |\ |\ |\ |\ |\ |\ |\ |\ |\
questions. Usually built with ETF's. |\ |\ |\ |\
