Canadian Securities Course (CSC) l Volume 1 | 600 Questions

MY ULTIMATE GOAL:  Make you fully prepared for your CSC exam!

This course:

• For those who want to enter into the banking industry in Canada.
• For those who are intended to take the CSC 1 exam.
• Covers Volume 1 of the Canadian Securities Course (CSC).
• Includes 6 mock exams, each consisting of 100 questions (Total of 600 questions).
• The closest pack of questions to the real exam.
• The timing (2 hours), format (multiple-choice), level of difficulty, and passing score (60%) have been set just like your real exam.
• Detailed explanations for each question are provided.
• You’ll be able to see how many questions you got right from which chapters and more importantly,
• All 6 mock exams are based on the same weighting of the real exam and include:
  • The Canadian Investment Marketplace: 15%
  • The Economy: 13%
  • Features and Types of Fixed-Income Securities: 12%
  • Pricing and Trading of Fixed-Income Securities: 11%
  • Common and Preferred Share: 13%
  • Equity Transactions: 10%
  • Derivatives: 10%
  • Corporations and their Financial Statements: 8%
  • Financing and Listing Securities: 8%

Our six series of mock exams meticulously replicate the format, difficulty level, and content weighting of the Canadian Securities Course exam. Through comprehensive practice, you will gain confidence, hone your skills, and become fully prepared to excel in your certification journey.

All questions have been written from scratch! You can see for yourself some of the amazing testimonials from our students who have aced the real exam:

FEATURED REVIEWS:

5 stars: I recently passed the Canadian Securities Course Volume 1 exam, and I owe a lot of my success to this mock exam course. The 6 mock exams provided were highly relevant and reflective of the actual exam content. The practice questions helped me understand the material better and significantly boosted my confidence. Highly recommend this course to anyone preparing for the CSC exam. I would love to have a similar set of mock test series for the 2nd Volume as well? Thanks. – Vedant L.

You will get SIX high-quality mock exams to be ready for your certification.

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Quality speaks for itself:

SAMPLE QUESTION #1 (Conceptual-based):

What scenarios could lead to an increase in the price of a currency in the foreign exchange market?

A. Increased demand for exports and improved economic performance.

B. Decreased demand for imports and decreased government spending.

C. Decreased demand for exports and political instability.

D. Increased supply of imports and trade deficits.

What’s your guess? Scroll below for the answer!

ANSWER:

Correct Option: A.

Detailed Explanation:

Why option A is correct:

1. Increased Demand for Exports:
   • When a country’s exports are in high demand, foreign buyers need to purchase that country’s currency to pay for the goods and services. This increased demand for the currency drives up its value in the foreign exchange market.
2. Improved Economic Performance:
   • Strong economic performance often leads to higher interest rates, as the central bank may raise rates to control inflation. Higher interest rates attract foreign investment, as investors seek better returns on investments denominated in that currency. This inflow of capital increases demand for the currency, boosting its value.

Incorrect Options:

Why option B is incorrect:

1. Decreased Demand for Imports:
   • While reducing imports can positively impact a country’s trade balance, it does not directly increase demand for the domestic currency in the foreign exchange market. The reduction in imports might have a stabilizing effect, but it doesn’t necessarily lead to a significant increase in currency value.
2. Decreased Government Spending:
   • Lower government spending could lead to slower economic growth, potentially decreasing investor confidence. This could reduce demand for the currency, making this scenario less likely to lead to an increase in the currency’s value.

Why option C is incorrect:

1. Decreased Demand for Exports:
   • A drop in demand for a country’s exports reduces the need for foreign buyers to purchase the domestic currency. This decrease in demand typically leads to a decline in the currency’s value.
2. Political Instability:
   • Political instability tends to decrease investor confidence, leading to capital outflows as investors seek safer, more stable currencies. This scenario would likely result in a depreciation, not an appreciation, of the currency.

Why option D  is incorrect:

1. Increased Supply of Imports:
   • When a country imports more goods, it needs to purchase foreign currencies to pay for those imports, increasing the supply of its own currency on the market. This increased supply generally puts downward pressure on the currency’s value.
2. Trade Deficits:
   • A trade deficit occurs when a country imports more than it exports, leading to a net outflow of currency. This reduces the currency’s value as it indicates that more of the currency is being sold than bought on the global market.

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SAMPLE QUESTION #2 (Calculation-based):

Emily believes that the price of XYZ Inc. stock will significantly decline in the near future. She decides to purchase 5 XYZ December 60 put options at the current price of $3.50. What is Emily’s maximum potential profit per share if the price of XYZ stock drops to $50 at expiration?

A. $5.50.

B. $6.50.

C. $3.50.

D. $10.00.

What’s your guess? Scroll below for the answer!

ANSWER:

Correct Option: B.

Detailed Explanation:

Step-by-Step Calculation:

Key Details:

• Type of Option: Put option (Emily expects the stock price to decline)
• Strike Price: $60
• Current Price of the Put Option: $3.50 per share
• Stock Price at Expiration: $50
• Number of Options Purchased: 5 (but the profit calculation will be per share)

Put Option Basics:

• A put option gives the holder the right (but not the obligation) to sell the underlying stock at the strike price ($60 in this case) before the option expires.
• If the stock price drops below the strike price, the put option becomes more valuable because it allows the holder to sell the stock at a higher price than the market price.

Profit Calculation:

1. Intrinsic Value at Expiration:
   • At expiration, the intrinsic value of the put option is calculated as:Intrinsic Value = Strike Price − Stock Price at Expiration
   • Substituting the values:Intrinsic Value= 60 − 50 = 10 dollars per share
2. Cost of the Put Option:
   • Emily paid $3.50 per share for the put options.
3. Maximum Profit per Share:
   • The maximum profit per share is the intrinsic value minus the cost of the put option: Maximum Profit per Share= Intrinsic Value − Cost of the Option= 10 − 3.50 = 6.50 dollars per share

Conclusion:

Emily’s maximum potential profit per share if the price of XYZ stock drops to $50 at expiration is $6.50.

Correct Answer: B. $6.50.

Welcome to the best practice exams to help you prepare for your Canadian Securities Course 1 exam.

• You can retake the exams as many times as you want
• This is a huge original question bank
• You get support from instructors if you have questions
• Each question has a detailed explanation
• Mobile-compatible with the Udemy app
• 30-days money-back guarantee if you’re not satisfied

Disclaimer:

The trade-marks AFP, AIS, BCO, CIM, CSI, CSC, CPH, DFOL, FP1, FP2, FPIC, FPSU, IDSC, IFC, NEC, OLC, PFP, PFSA, PMT, WME, Wealth Management Essentials, Branch Compliance Officer, Canadian Securities Course, Conduct and Practices Handbook Course, Investment Funds in Canada, New Entrants Course, Wealth Management Essentials, Personal Financial Services Advice Reading, Financial Planning 1, Financial Planning 2, Financial Planning Supplement, Applied Financial Planning, and Personal Financial Planner are owned by the Canadian Securities Institute (CSI®). HTB Intelligence Inc. is not sponsored, licensed, or endorsed by the Canadian Securities Institute (CSI®). Our notes and study materials and mock exams are independently produced to assist students in preparing for their exams. These materials are not officially sponsored by any other organization in the financial services industry.

We hope that by now you’re convinced!

Happy learning and Best of luck on your CSC journey!