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 does CIPF protect customers against in the financial market?

Cybersecurity threats
Market fluctuations
Insolvency of an IIROC dealer member
Interest rate changes

The correct answer is: Insolvency of an IIROC dealer member

CIPF, or the Canadian Investor Protection Fund, is a program that protects customers against the insolvency of IIROC dealer members. This means that if the dealer member holding the customer's assets goes bankrupt, the customer's investments will be protected up to a certain amount. This option is correct because it directly addresses what CIPF aims to protect against in the financial market. While the other options may also be concerns for customers in the financial market, they are not the main focus of CIPF. Cybersecurity threats and interest rate changes are potential risks that customers should be aware of, but they are not specifically addressed by CIPF. Market fluctuations are also a concern for customers, but they are not the main concern that CIPF is designed to protect against. Therefore, these options are incorrect because they do not align with the purpose of CIPF.