Free CSC1 Practice Test Questions 2026

A private company is working with an advisory firm To apply for a listing on a public exchange. The management is concerned with the additional costs for the company Incurred by the listing and ongoing annual fees. What should management consider with regard to the costs and benefits of public listing?

A. Management will benefit from the public disclosure of changes in the company.

B. Listing the company win attract new shareholders and increase the ability to raise capital.

C. Listing the company will require restrictions on stock options Issued for Internal use

D. The valuation of securities for estate tax purposes and estate tax punning will be easier

A large corporation has issued the following securities:commercialpaper, first mortgage bonds, and equipment trust certificates Which ranging of the securities is correctly seated from most secure to teas: secure?

A. First mortgage bonds equipment trust certificates, commercial paper.

B. Equipment trust certificates, first mortgage bonds, commercial paper.

C. Commercial paper fast mortgage bonds, equipment "trust certificates

D. Firm mortgage bonds commercial paper, equipment trust certificates

What is a characteristicof provincial savings bonds that distinguishes them from other provincial bonds?

A. Theyare backed by provincial assetspledged an security.

B. They can &e purchased only by residents of the province.

C. They can be purchased at any time of the year.

D. They do not have redemption rules

Why wouldacorporation choose to issue preferred shares rather than debt?

A. Existing assets have excess financing capacity to justify the issue of preferred shares.

B. The preferred dividend rate usually varies with the market interest rates

C. issuing preferred shares would reduce the amount of leverage.

D. The costs for issuing preferred shares are usually kwh than debt.

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

A. investment dealer

B. Buyer

C. Seller

D. Exchange

What is one atthe most important factors todetermine how muchof a product people buy or sell in a given marketplace?

A. Consumer satisfaction

B. Government spending

C. Price level

D. Maximized profits

On what is the dividend rate for rate-reset preferred shares based?

A. The preferred share issuer's senior bonds plus a spread

B. The five-year Government of Canada bond yield plus a spread

C. The three-month Government of Canada Treasury bill yield plus a spread

D. The Dank at Canada's overnight rate plus a spread

What is theImpact from a security price increase on the investorholding a long margin position?

A. The investor will incur a loss equivalent lo the difference be-ween the purchase and sale price.

B. The investor must immediately pay interest on the excess margin amount

C. The Investor must provide additional funds to cover the price difference

D. The investor has access to additional funds from the account available for withdrawal.

Under which circumstance is an option considered to be in-the-money?

A. When a call option with the price of the underlying asset is lower than the strike price.

B. When a put option with the price of the underlying asset is higher than the strike price.

C. When a put option with the price of the underlying asset is higher than the strike price.

D. When a put option with the price of the underlying asset is higher than the strike price.

What is unique to a shortmargin position?

A. Margin is discretional for securities with certain price ranges.

B. Short seller can suffer unlimited loss if the price of the security rises rather than fails.

C. There is a timelimit that a short position may be maintained

D. Margin is established when the dealer memberloansmoney to the client.

Brice purchased a $10.000 real return bond. The bond has a 10-year term to maturity and an annual coupon of 5% paid semi-annually. If the Consumer Price index increases by 0.8% over the next six months, what is the amount of Brice's first coupon payment?

A. $2920

B. $252

C. $250

D. $254

Why does thefederalgovernment borrow from the capital markets?

A. To raise capital for streets, servers and waterworks

B. To support The capital markets

C. To fund spending In excess of revenues

D. To support the expansion of corporations