Canadian Securities Course (CSC) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Question: 1 / 400

What distinguishes a Laddered GIC in the realm of investments?

a short-term corporate money market security.

the interest rate for these GICs increases over the term.

the investment for these GICs is evenly divided into multiple-term lengths.

A laddered GIC is a type of investment where the total amount is divided into multiple-term lengths, with each portion maturing at regular intervals. This strategy helps to reduce the risk and allows for potential gains if interest rates increase over time. This makes options A and D incorrect because they do not involve dividing the investment into multiple-term lengths. Option B is also incorrect because the interest rate for laddered GICs does not necessarily increase over the term, but rather offers a more consistent and stable return.

Get further explanation with Examzify DeepDiveBeta

set up to retire a specific amount of bonds through purchases in the market, if they can be made at or below a stipulated price.

Next Question

Report this question

Download Canadian Securities Course (CSC) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy