Free CSI CSC1 Exam Questions

Question 1

Who in a sell-side firm is responsible for structuring new debt issues and bringing them to the primary market?

A : Trader

B : Investment banker

C : Portfolio manager

D : Sales representative

Answer: B

Question 2

ABT Ltd. is currently trading at $65. An investor buys five ABT July 55 put options for $2each. Ignoring commissions, what price must ABT Ltd. common shares trade at for theinvestor to break even on her put options?

A : $55

B : $57

C : $53

D : $63

Answer: C

Question 3

ABT Ltd. is currently trading at $65. An investor buys five ABT July 55 put options for $2each. Ignoring commissions, what price must ABT Ltd. common shares trade at for theinvestor to break even on her put options?

A : $55

B : $57

C : $53

D : $63

Answer: C

Question 4

A large number of well-trained, willing-to-work individuals have given up trying to find employment. All else being equal, how will the labor market indicators be affected by this event.

A : A decrease in the structural unemployment rate.

B : A decrease in the overall unemployment rate.

C : An increase in the participation rate.

D : An increase in the labour force.

Answer: B

Question 5

When acting as a principal, how do investment dealers generate revenue?

A : Through commissions

B : Thrown tracers.

C : Through brokerage changes.

D : Through spreads on buy/sell prices.

Answer: D