Credit Unions and Caisses Populaires
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Questions and Answers

What is the primary function of an investment dealer?

  • To provide research and analysis to clients
  • To manage investment portfolios
  • To act as a financial intermediary and facilitate buying and selling of securities (correct)
  • To provide financial advice to clients
  • Which of the following is NOT a characteristic of a fixed-income security?

  • Capital appreciation (correct)
  • Return of principal
  • Regular interest payments
  • Liquidity
  • What is the main objective of monetary policy in Canada?

  • To control inflation (correct)
  • To promote economic growth
  • To reduce interest rates
  • To regulate the banking system
  • What is the role of the Bank of Canada in monetary policy?

    <p>To set interest rates</p> Signup and view all the answers

    What is the purpose of a sinking fund in a bond issue?

    <p>To retire a portion of the bond issue</p> Signup and view all the answers

    What is the primary benefit of diversification in a portfolio?

    <p>Reduced risk</p> Signup and view all the answers

    What is the main advantage of an exchange-traded fund (ETF)?

    <p>Lower fees compared to mutual funds</p> Signup and view all the answers

    What is the primary objective of modern portfolio theory?

    <p>To optimize portfolio diversification</p> Signup and view all the answers

    What is the primary benefit of a mutual fund?

    <p>All of the above</p> Signup and view all the answers

    What is the role of the Canadian Securities Administrators?

    <p>All of the above</p> Signup and view all the answers

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