EMT Practice Test

1. Question Content...

---

Question1: What do the returns on treasury bills often represent?

Question2: What type of return is adjusted for inflation?

Question3: Which exchange trades all financial and equity futures and options listed for trading in Canada?

Question4: What are examples of primary investment objectives?

Question5: What is the normal shape of a yield curve?

Question6: A business trust would typically purchase the underlying company assets of which type of operation?

Question7: What is a characteristic of the FTSE Canada Universe Bond Index?

Question8: What is a characteristic of provincial savings bonds?

Question9: Which fiscal policy measure was designed to encourage individuals to save?

Question10: When considering the overall investment objectives of liquid alternatives, what time horizon is the most appropriate for retail investors when investing in these funds?

Question11: What type of return is calculated for a security held for 18 months if no adjustments to the return are made?

Question12: What is the difference between sinking funds and purchase funds concerning the redemption of bonds poor to maturity?

Question13: What is a disadvantage of fee-based accounts when compared to commission-based accounts?

Question14: What is the likely outcome at the end of a five-year term of a rate-reset preferred share if the issuer does not redeem the shares?

Question15: Where would the description d a company's fixed assets normally be found?

Question16: How can an analyst use trend analysis to analyze a company's financial statements?

Question17: When considering management accounts, what is most accurate regarding model-based account management?

Question18: Franco purchased an ETF in his non-registered account, and his total adjusted cost base in year 1 was
$30,000. The ETF distributes income each year. And this reinvested distribution total was $1,750. The ETF also distributes a return of capital of $850. What would Franco's total capital gain be if the sold the ETF for
$39,000?

Question19: All things being equal and assuming a stable economy, which factor most likely limits the effectiveness of fiscal policy?

Question20: In Canada, which industries are categorized as defensive?

Question21: For what type of company is the dividend discount model least applicable?

Question22: Why would a corporation choose to issue preferred shares rather than debt?

Question23: Which will taxed at the taxpayer' marginal tax rate?

Question24: What actions can a government take to lower a $40 billion national deficit?

Question25: What market condition is typically evident during the late contraction to end of contraction phases?

Question26: What do technical analysis and fundamental analysis have in common?

Question27: When a futures contract is entered into, who sets the minimum initial margin rate?

Question28: The following financial information is available for fund SKE:

What is SKE fund's net asset value per share?

Question29: What is the key objective for investors in alternative strategy funds?

Question30: What type of investment typically involves massive amounts of capital provided by a small number of investors?

Question31: What is the main pitfall of closet indexing for investors?

Question32: How do the fees differ between an F-class and front-end version of the same fund?

Question33: What type of risk were mortgage-backed securities designed to address?

Question34: What information must be disclosed in ETF Facts documents that may be excluded from Fund Facts documents?

Question35: What is a structured product?

Question36: What must happen for a redemption to be processed from a mutual fund?

Question37: Which ratio gauges a company's ability to repay its debts using funds generated from operating activities?

Question38: What is one at the most important factors to determine how much of a product people buy or sell in a given marketplace?

Question39: A client who seeks advice from an investment advisor but does not require financial planning guidance.
Which platform is most appropriate for this client?

Question40: Which factors tends to increase when inflation increases?

Question41: Which type of mutual funds tend to have the lowest management fees?

Question42: A bond with a duration of five is currently priced at $103. If Interest rates rise by 2%. approximately what win be me bond's price?

Question43: Which asset type is classified as a fixed-income asset for portfolio management purposes?

Question44: Jerry sells Company A's regular bond because the thinks it is overvalued. Using the proceeds from the sale, jerry then busy Company A's convertible bond because the thinks that the equity component is undervalued and that he convertible bond's coupon rate is relatively attractive given his forecast of falling interest rates.
What fixed-come management style is jerry most likely using?

Question45: What actions can a government take to lower a $40 billion national deficit?

Question46: Which type of sell side equity revenue is earned when a dealer acts in thecapacity of an agent in clients trade?

Question47: What is the main benefit of investing in preferred shares?

Question48: What is the measure of risk commonly applied to portfolio and to individual securities within that portfolio?

Question49: A fixed-rate bond was originally priced at $100 and paid $5 per year in interest. Currently, the bond is trading at $102.75. What is the impact on the current yield of coupon of the bond as a result of the change in price?