Canadian Securities Course (CSC) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the Canadian Securities Course Exam with our comprehensive practice test. Explore flashcards and multiple-choice questions, each with detailed hints and explanations. Prepare for your CSC exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Describe Commercial Paper in the financial context.

a protective provision providing that no subsequent mortgage bond issue may be secured by all or part of the company's assets.
a short-term commercial draft sold at a discount.
a type of savings product that pays a competitive rate of interest and that is guaranteed for one or more years.
the investment for these GICs is evenly divided into multiple-term lengths.

The correct answer is: a short-term commercial draft sold at a discount.

Commercial paper is a type of short-term promissory note issued by companies to borrow money from investors. It is typically sold at a discount and has a maturity of less than 270 days. This option is correct because it accurately reflects the definition of commercial paper. Option A is incorrect as it describes a provision for mortgage bond issues and not commercial paper. Option C is incorrect as it describes a type of savings product with a guaranteed interest rate, which is different from commercial paper. Option D is incorrect as it describes a type of investment called Guaranteed Investment Certificates (GICs), which also differs from commercial paper.