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 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.
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.

The correct answer is: 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.