Free Practice CSI CSC2 Exam Questions 2025

Stay ahead with 100% Free Canadian Securities Course Exam 2 CSC2 Dumps Practice Questions

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Total 600 Questions | Updated On: Jun 03, 2025

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Question 1

In the context of conventional mutual funds and alternative mutual funds, which of the following accurately describes the maximum allowed short sales for a fund?

A : Conventional mutual funds can short sell up to 20% of the fund’s NAV, while alternative mutual funds can short sell up to 50% of the fund’s NAV.

B : Conventional mutual funds can short sell up to 50% of the fund’s NAV, while alternative mutual funds can short sell up to 20% of the fund’s NAV.

C : Conventional mutual funds can short sell up to 5% of the fund’s NAV, while alternative mutual funds can short sell up to 10% of the fund’s NAV.

D : Conventional mutual funds can short sell up to 10% of the fund’s NAV, while alternative mutual funds can short sell up to 20% of the fund’s NAV.

Answer: A

Question 2

Robert is evaluating a covered call ETF that writes out-of-the-money calls and pays a fixed monthly distribution. If the ETF's option premiums and dividends are not sufficient to cover the fixed distribution, what might be a potential consequence?

A : The ETF will increase its management fees to cover the shortfall.

B : The ETF will shift to a variable payment structure to address the shortfall.

C : The ETF will halt its covered call strategy to avoid losses.

D : The ETF may deplete its principal to maintain the fixed distribution payments.

Answer: D

Question 3

Linda is considering investing in split shares. Which of the following statements best describes the capital shares’ role in this investment structure?

A : Capital shares receive the majority of dividends from the underlying portfolio.

B : Capital shares are primarily responsible for receiving the principal repayment at maturity.

C : Capital shares are redeemed at the end of the term, reflecting their portion of capital gains.

D : Capital shares guarantee a fixed income and lower risk compared to preferred shares.

Answer: C

Question 4

An equity market-neutral strategy is designed to?

A : Maintain zero beta and no market exposure.

B : Have net long exposure to capitalize on market trends.

C : Adjust long and short positions dynamically based on market movements.

D : Use derivatives to hedge market risk.

Answer: A

Question 5

Emma invested in a split-share corporation where the preferred shares have a priority claim on $40 of the common shares’ value. If the current value of the common shares is $55 and the corporation is winding up, what amount will Emma receive for her capital shares if they hold the remaining value after the preferred shares' claim?

A : $15.

B : $40.

C : $95.

D : $55.

Answer: A

Page: 1 / 120

Total 600 Questions | Updated On: Jun 03, 2025

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