CSC Cheat Sheet 2026

The 30 highest-yield CSC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which term describes the difference between the price an underwriter pays for a new issue and the price at which it is offered to the public? → Gross spread (underwriting discount)
2. A high Price-to-Earnings (P/E) ratio for a company, relative to its industry peers, could indicate which of the following? → Investors have high expectations for the company's future earnings growth.
3. When Canada experiences a current account surplus, what does this generally indicate? → Canada's exports of goods, services, and investment income exceed its imports
4. When a bond's yield surpasses its coupon rate... → it is trading at a discount
5. The premium of an option is composed of its intrinsic value and its time value. If a put option is 'at-the-money,' what constitutes its entire premium? → Time value only
6. An analyst observes a stock's price repeatedly falling to a certain level and then bouncing back up. In technical analysis, what is this price level called? → A support level
7. Which Canadian body provides investor protection coverage if a CIRO member firm becomes insolvent? → CIPF
8. Commodity investments are often included in a portfolio because they tend to: → Have low correlation with stocks and bonds and hedge against inflation
9. Which Canadian economic indicator measures the total value of goods produced by the manufacturing sector in a given month? → Manufacturing Sales
10. Except for the following, all of the following assets lose value over time after being acquired by a company: → Trademarks
11. Recessions are commonly defined as at least... → Two declining quarters of real GDP
12. Which bond among the following has the lowest likelihood of volatility? → 5-year GOC bond with a 10% coupon
13. Which of the following is a key difference between a Government of Canada Treasury Bill (T-bill) and corporate Commercial Paper? → Commercial paper carries credit risk, whereas T-bills are considered virtually risk-free.
14. Which financial intermediary pools investor funds and invests them in money market instruments with a focus on capital preservation? → Money market fund
15. Which organization regulates the conduct of investment dealers and their registered representatives across Canada? → CIRO
16. Which type of fiscal policy involves increasing government spending or reducing taxes during an economic downturn? → Expansionary fiscal policy
17. Which feature of structured products allows issuers to customize the risk-return profile for specific investor needs? → The embedded derivative component that can be tailored to provide specific payoff profiles
18. 'Distressed debt' investing involves purchasing: → Securities of companies near or in bankruptcy at a significant discount
19. A 'best efforts' underwriting agreement means the investment dealer will: → Use maximum effort to sell the issue but does not guarantee full sale
20. Which alternative investment strategy involves simultaneously buying and selling related securities to profit from price discrepancies? → Arbitrage strategy
21. Which statement about over-the-counter (OTC) markets is correct? → OTC markets involve direct trading between parties without a centralized exchange
22. What does 'market capitalization' measure? → Total market value of a company's outstanding shares
23. Which theory, presuming that different market participants have distinct preferences when buying or selling bonds, explains the yield curve's shape? → Market segmentation theory
24. Within a range of ____ basis points is where the overnight rate is found. → 50
25. "Inflation is stable.... corporate profits are rising and new business start-ups outnumber bankruptcies" ... which stage of the business cycle is described? → expansion
26. What happens if the Canadian government's revenue is insufficient to cover its expenses? → The Government runs a deficit and it must borrow money
27. Which of the following is a key characteristic that distinguishes hedge funds from traditional mutual funds? → Hedge funds can use leverage, short selling, and derivatives to pursue absolute returns
28. What does the term 'lock-up period' refer to in the context of alternative investments? → A minimum holding period during which investors cannot redeem their investment
29. What is the main role of the money market in the Canadian financial system? → Providing short-term financing through instruments with maturities of one year or less
30. The Sharpe ratio is used to evaluate alternative investments by measuring: → Excess return earned per unit of total risk (standard deviation)