CSC CHAPTER 1 - THE CANADIAN SECURITIES
INDUSTRY QUESTIONS | TESTED AND TRIED
ANSWERS | LATEST UPDATE 2024/2025 100%
(GRADE A+)
A user of capital is people who need to ____ capital for their own use.
List two examples.
Ans>> BORROW
A) A couple needs to borrow money to buy a home.
B) An entrepreneur needs to raise funds to develop a new product.
A supplier of capital is someone who ____ capital, not necessarily for themselves.
Give an example.
Ans>> provides
A) A mother wants to set up a regular program to save for her children's education.
1
,What do suppliers and users of capital have in common?
Ans>> The need for a financial intermediary to help them meet their goals.
What is a financial intermediary?
Ans>> An institution such as a bank that borrows money from suppliers of capital and
lends it to users of capital.
What are the two ways a financial intermediary can work?
How are they different? (1)
Ans>> 1) Investors lend funds to the intermediary, and the intermediary, in turn, lends
those funds to borrowers in the form of loans, mortgages, and other products.
2) The intermediary can also raise capital by bringing a new issue of securities to the
financial markets.
2
,The difference is that the latter means is more direct.
Market activity is measured by the size and ____ of new issues that are brought to the
market, as well as the _____ and liquidity of trading of those issues. (4)
Ans>> Variety
depth
Who regulates the Canadian securities industry?
a) bank of canada
b) provinces
c) federal government
d) the big six banks
Ans>> b) the provinces
3
, Canadian securities are regulated by the provinces by creating and enforcing their own
laws and regulations through securities ____ / ____
Ans>> commissions / administrators
What does CIRO stand for, and what is its functions? (1 + 2)
Ans>> CIRO = Canadian Investment Regulatory Organization
- National self-regulatory organization (SRO) that oversees all investment dealers, mutual
fund dealers, and trading activity on Canada's debt, equity, and mutual fund marketplaces
- Establishes and enforces industry regulations that protect investors and maintain fair,
equitable, and ethical practices
What two former organizations does CIRO consist of?
Ans>> Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual
Fund Dealers Association of Canada (MFDA)
4
INDUSTRY QUESTIONS | TESTED AND TRIED
ANSWERS | LATEST UPDATE 2024/2025 100%
(GRADE A+)
A user of capital is people who need to ____ capital for their own use.
List two examples.
Ans>> BORROW
A) A couple needs to borrow money to buy a home.
B) An entrepreneur needs to raise funds to develop a new product.
A supplier of capital is someone who ____ capital, not necessarily for themselves.
Give an example.
Ans>> provides
A) A mother wants to set up a regular program to save for her children's education.
1
,What do suppliers and users of capital have in common?
Ans>> The need for a financial intermediary to help them meet their goals.
What is a financial intermediary?
Ans>> An institution such as a bank that borrows money from suppliers of capital and
lends it to users of capital.
What are the two ways a financial intermediary can work?
How are they different? (1)
Ans>> 1) Investors lend funds to the intermediary, and the intermediary, in turn, lends
those funds to borrowers in the form of loans, mortgages, and other products.
2) The intermediary can also raise capital by bringing a new issue of securities to the
financial markets.
2
,The difference is that the latter means is more direct.
Market activity is measured by the size and ____ of new issues that are brought to the
market, as well as the _____ and liquidity of trading of those issues. (4)
Ans>> Variety
depth
Who regulates the Canadian securities industry?
a) bank of canada
b) provinces
c) federal government
d) the big six banks
Ans>> b) the provinces
3
, Canadian securities are regulated by the provinces by creating and enforcing their own
laws and regulations through securities ____ / ____
Ans>> commissions / administrators
What does CIRO stand for, and what is its functions? (1 + 2)
Ans>> CIRO = Canadian Investment Regulatory Organization
- National self-regulatory organization (SRO) that oversees all investment dealers, mutual
fund dealers, and trading activity on Canada's debt, equity, and mutual fund marketplaces
- Establishes and enforces industry regulations that protect investors and maintain fair,
equitable, and ethical practices
What two former organizations does CIRO consist of?
Ans>> Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual
Fund Dealers Association of Canada (MFDA)
4
