CSC

CSC practice questions, page 2 of 4, with answer review and explanations.

Question 6

What type of return is adjusted for inflation?

  1. Nominal.
  2. Ex-ante.
  3. Real.
  4. Ex-post.

Question 7

If the government wants to stimulate the economy through fiscal policy, what action should it take?

  1. Decrease taxes and interest rates.
  2. Decrease taxes and increase spending.
  3. Decrease interest rates and increase money supply.
  4. Increase spending and money supply.

Question 8

Parmis reviews two similar ETFs and wants to compare their tracking errors. Which indicator should she be looking at when calculating the tracking error?

  1. MER.
  2. Beta.
  3. Return.
  4. NAV.

Question 9

What is commonly used to approximate the risk-free rate of return?

  1. Treasury bonds.
  2. Bank prime rate.
  3. Treasury bills.
  4. Federal funds rate.

Question 10

What is the bottom price of a trading range for a security which is the price at which most investors would sense value and be willing to buy the security?

  1. Neckline.
  2. Buy signal.
  3. Support level.
  4. Resistance level.