Canadian Securities Course (CSC) Practice Exam

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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!

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What characterizes Canada Savings Bonds (CSBs)?

a protective provision written into the trust indenture of a company's debenture issue.
a short-term corporate money market security.
a type of savings product that pays a competitive rate of interest and that is guaranteed for one or more years.
a short-term commercial draft sold at a discount.

The correct answer is: a type of savings product that pays a competitive rate of interest and that is guaranteed for one or more years.

Canada Savings Bonds (CSBs) are a type of savings product offered by the Canadian government. Option A, a protective provision for debenture issues, is referring to a different financial instrument. Option B, a short-term corporate money market security, is also referring to a different type of investment. Option D, a short-term commercial draft, is also not the correct answer as CSBs are not sold at a discount. Therefore, the most accurate characterization of CSBs is that they are a type of savings product that guarantees a competitive rate of interest for one or more years. This means that individuals can confidently save their money in CSBs and earn a guaranteed return.