Free CSC Volume 1 Questions and Answers

Question 1

When secondary market stock trading occurs...

Accepted Answer

an investor is buying shares from another investor

Answer

In secondary market stock trading, investors buy and sell shares among themselves. The issuing company is not directly involved in these transactions. So, the answer is: "an investor is buying shares from another investor."

Question 2

Nearly all debentures and bonds are offered for sale through

Accepted Answer

dealer markets

Answer

Nearly all debentures and bonds are offered for sale through

Question 3

Eligible deposits at each member institution are insured by CDIC up to ____ per deposit.

Accepted Answer

$100,000

Answer

Eligible deposits at each member institution are insured by the CDIC (Canada Deposit Insurance Corporation) up to $100,000 per deposit. This insurance helps protect depositors' funds in the event that a member institution fails.

Question 4

What happens if the Canadian government's revenue is insufficient to cover its expenses?

Accepted Answer

The Government runs a deficit and it must borrow money

Answer

When the Canadian government's revenue is insufficient to cover its expenses, it runs a deficit, meaning it spends more money than it collects in revenue. To finance this deficit, the government typically borrows money by issuing bonds and other debt securities. So, the answer is: "The Government runs a deficit and it must borrow money."

Question 5

"Inflation is stable.... corporate profits are rising and new business start-ups outnumber bankruptcies" ... which stage of the business cycle is described?

Accepted Answer

expansion

Answer

The description provided, with stable inflation, rising corporate profits, and a higher number of new business start-ups compared to bankruptcies, indicates an expansionary phase of the business cycle. During an expansion, economic activity is generally increasing, leading to growth in various sectors of the economy. So, the answer is indeed "expansion."

CSC - Canadian Securities Course Practice Test

CSC - Canadian Securities Course Practice Test

Free CSC Volume 1 Questions and Answers