CSC

Review 100 CSC practice questions with answer explanations and community insights.

Question 1

What is the best description of a sector rotation strategy?

  1. Adjusts investments according to which industry sector will rally most during various stages of the economic cycle.
  2. Shifts investments from one cyclical industry to another depending on the stage of the economic cycle.
  3. Occasional adjustments lead to lower trading costs and expenses.
  4. Shifts from one sector to another during various economic cycles using a bottom-up approach.

Question 2

Which type of client may be suitable for a direct guidance self-directed brokerage model?

  1. A client who dislikes regular trading and seeks a passive management model.
  2. A client who trades frequently, sources trade ideas from their favourite web threads and dislikes in-person meetings.
  3. A client who is confident in their trade decisions and is not looking for advice.
  4. A client who is looking for a broker who can offer lots of ancillary consultative services like financial planning and wealth management.

Question 3

What is a disadvantage of a structured product?

  1. Lack of transparency.
  2. Excessive diversification.
  3. Complexity.
  4. High level of risk.

Question 4

What is the predominant disclosure delivery regime of ETFs?

  1. Fund Facts.
  2. ETF Facts.
  3. Offering memorandum.
  4. Information folder.

Question 5

Which item is generally excluded from the debt-to-equity ratio?

  1. Short-term borrowings.
  2. Share capital.
  3. Retained earnings.
  4. Trade payables.
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