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Chapter 19 CSC

Authored by Harry Vadalkar

Business

University

Used 30+ times

Chapter 19 CSC
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38 questions

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1.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which of the following products can be sold on margin

ETF
Bond Mutual Fund
Equity mutual fund
Balanced Mutual Fund

2.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Harry who is a dealer is selling an ETF to his client, he has to give the ETF fund fact to his client

Before the sale
Within two days of the sale
At the moment of sale
Within 5 business days after the sale

3.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

ETFs are created or redeemed in standard units known as

The prescribed number of units
Odd lot units
Contract
A constant number of units

4.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

A special feature of ETF as compared to Mutual fund is

In-kind exchange
Management expense ratio
Tracking error
Trailer commission

5.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Designated brokers of ETFs generally make the majority of their money by

Bid / ask spreads on units
Management fees
Front end loads
Back end load

6.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Which of the following will keep the tracking error down by keeping the difference between NAV and unit value minimum

Arbitrage
Small bid/ask spread
Low front end load
Low back end load

7.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

Harry who is a registered dealer is looking at an ETF based on TSX 60, shares of ETF is trading at $60 while the basket of securities is trading at $65 to make a profit he would most likely

Buy shares of ETF from the market, convert them for a basket of shares and then sell the basket of shares
Buy the basket of shares exchange them for ETF shares and then sell them on the open market
Trade at the bid-ask spread
Trade ETFs in the different market as it is trading at $60, less than its NAV of $65

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