CSC1 Exam Dumps : Canadian Securities Course Exam 1

When a dealer member fills a client’s order for an unlisted security from its own inventory, the dealer is acting as aprincipal.

A (Alternative trading system)refers to electronic platforms for trading securities.

B (Clearing agent)involves post-trade settlement activities.

C (Over-the-counter agent)is incorrect since the dealer is transacting directly.

References:Volume 1, Chapter 9 ("Principal and Agency Transactions")​.

The normal shape of a yield curve is anupward slope, indicating that longer-term bonds offer higher yields than shorter-term bonds. This reflects the additional risk and time value of money associated with longer maturities.

A. Downward slope: This could describe a yield curve during unusual circumstances, such as a period of market uncertainty or deflation.

B. Inverted: An inverted yield curve, where shorter-term yields exceed longer-term yields, is a rare occurrence and often signals economic recession.

D. Humped: A humped curve is rare and occurs when intermediate-term yields exceed both short-term and long-term yields.

Retained earningsrepresent the portion of a company’s annual profit that is retained and not paid out as dividends. It is used to reinvest in the business or pay down debt.

B. Comprehensive incomeincludes all changes in equity except those from owner contributions or distributions.

C. Share capitalrefers to funds raised by issuing shares.

D. Gross profitis revenue minus the cost of goods sold, not the portion retained.

References:Volume 1, Chapter 11 ("Corporations and Their Financial Statements")​.