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.

What is the purpose of the "Know your client" rule?

To minimize tax liabilities
To maximize brokerage fees
To learn essential facts about the client before making decisions
To speed up trading processes

The correct answer is: To learn essential facts about the client before making decisions

The "Know your client" rule is a critical part of the financial industry that requires brokers and financial advisors to understand their clients' financial situation, risk tolerance, and investment objectives. This rule was implemented to protect investors by ensuring that financial advisors act in their clients' best interests. Option A is incorrect because minimizing tax liabilities is not the primary purpose of the "Know your client" rule. Option B is also incorrect as it suggests that the rule serves to benefit brokers, which is not the case. Option D is incorrect as the rule does not intend to speed up trading processes, but rather to thoroughly understand the client before making investment decisions on their behalf.