Canadian Securities (CSC) Test #1 questions |\ |\ |\ |\ |\ |\
with answers |\
Retail firms - CORRECT ANSWERS ✔✔full service and discount
|\ |\ |\ |\ |\ |\ |\ |\ |\
brokerage firms for individuals.|\ |\ |\
Institutional firms - CORRECT ANSWERS ✔✔includes pension
|\ |\ |\ |\ |\ |\ |\
funds, mutual funds, and insurance companies.
|\ |\ |\ |\ |\
Integrated firms - CORRECT ANSWERS ✔✔contains all aspects of
|\ |\ |\ |\ |\ |\ |\ |\ |\
retail and institutional firms.
|\ |\ |\
Front office - CORRECT ANSWERS ✔✔in charge of portfolio
|\ |\ |\ |\ |\ |\ |\ |\ |\
management, marketing, sales, and trading. |\ |\ |\ |\
Middle office - CORRECT ANSWERS ✔✔in charge of compliance,
|\ |\ |\ |\ |\ |\ |\ |\ |\
accounting, audits, and legal. |\ |\ |\
Back office - CORRECT ANSWERS ✔✔in charge of settlements and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clearing.
Schedule I banks - CORRECT ANSWERS ✔✔large domestic banks.
|\ |\ |\ |\ |\ |\ |\ |\ |\
There are ownership restrictions on shares - must be widely held.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
,Schedule II banks - CORRECT ANSWERS ✔✔large foreign banks.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Can do same activities as domestic banks.
|\ |\ |\ |\ |\ |\
Schedule III banks - CORRECT ANSWERS ✔✔foreign branches of
|\ |\ |\ |\ |\ |\ |\ |\ |\
banks. They are limited, with a more institutional focus.
|\ |\ |\ |\ |\ |\ |\ |\
Trust company - CORRECT ANSWERS ✔✔acts as a trustee.
|\ |\ |\ |\ |\ |\ |\ |\
Auction market - CORRECT ANSWERS ✔✔market in which
|\ |\ |\ |\ |\ |\ |\ |\
securities are bought and sold by brokers acting as agents for their
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clients (stock exchanges).
|\ |\ |\
Dealer market - CORRECT ANSWERS ✔✔a network of
|\ |\ |\ |\ |\ |\ |\ |\
marketplaces. Here, trades are conducted OTC and consist of |\ |\ |\ |\ |\ |\ |\ |\ |\
bonds and debentures.
|\ |\
Equity electronic trading system - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔competes with existing exchanges. They can only trade stocks |\ |\ |\ |\ |\ |\ |\ |\ |\
that are on an existing exchange. They may have benefits such as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
different hours, better commission, etc.
|\ |\ |\ |\
Fixed-income electronic trading system - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\
✔✔where almost all bonds are traded (such as CanDeal).
|\ |\ |\ |\ |\ |\ |\ |\
Structured product - CORRECT ANSWERS ✔✔has the |\ |\ |\ |\ |\ |\ |\
characteristics of debt, equity, and the investment fund (can be in |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the form of principal-protected notes or index-linked guarantees).
|\ |\ |\ |\ |\ |\ |\
, IIROC (Investment Industry Regulatory Organization of Canada) -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔the Canadian investment industry's SRO.
|\ |\ |\ |\ |\ |\ |\
It carries out its responsibilities through setting and enforcing rules
|\ |\ |\ |\ |\ |\ |\ |\ |\
regarding the proficiency, business, and financial conduct of
|\ |\ |\ |\ |\ |\ |\ |\ |\
dealer firms and their registered employees.
|\ |\ |\ |\ |\
MFDA (Mutual Fund Dealers Association) - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔the SRO that regulates the distribution (dealer) side of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
mutual fund industry in Canada. |\ |\ |\ |\
OSFI (Office of the Superintendent of Financial Institutions) -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔the federal regulatory agency whose main
|\ |\ |\ |\ |\ |\ |\
responsibilities regarding insurance companies and segregated
|\ |\ |\ |\ |\ |\ |\
funds are to ensure that the companies issuing the funds are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
financially solvent. |\
CDIC (Canadian Deposit Insurance Corporation) - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔a federal Crown Corporation providing deposit |\ |\ |\ |\ |\ |\ |\
insurance against loss (up to $100,000 per depositor) when a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
member institution fails. |\ |\
CIPF (Canadian Investor Protection Fund) - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔a fund that protects eligible customers in the event of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
insolvency of an IIROC dealer member. |\ |\ |\ |\ |\ |\
General acct. = $1M total |\ |\ |\ |\
Separate acct. = $1M each |\ |\ |\ |\
with answers |\
Retail firms - CORRECT ANSWERS ✔✔full service and discount
|\ |\ |\ |\ |\ |\ |\ |\ |\
brokerage firms for individuals.|\ |\ |\
Institutional firms - CORRECT ANSWERS ✔✔includes pension
|\ |\ |\ |\ |\ |\ |\
funds, mutual funds, and insurance companies.
|\ |\ |\ |\ |\
Integrated firms - CORRECT ANSWERS ✔✔contains all aspects of
|\ |\ |\ |\ |\ |\ |\ |\ |\
retail and institutional firms.
|\ |\ |\
Front office - CORRECT ANSWERS ✔✔in charge of portfolio
|\ |\ |\ |\ |\ |\ |\ |\ |\
management, marketing, sales, and trading. |\ |\ |\ |\
Middle office - CORRECT ANSWERS ✔✔in charge of compliance,
|\ |\ |\ |\ |\ |\ |\ |\ |\
accounting, audits, and legal. |\ |\ |\
Back office - CORRECT ANSWERS ✔✔in charge of settlements and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clearing.
Schedule I banks - CORRECT ANSWERS ✔✔large domestic banks.
|\ |\ |\ |\ |\ |\ |\ |\ |\
There are ownership restrictions on shares - must be widely held.
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
,Schedule II banks - CORRECT ANSWERS ✔✔large foreign banks.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Can do same activities as domestic banks.
|\ |\ |\ |\ |\ |\
Schedule III banks - CORRECT ANSWERS ✔✔foreign branches of
|\ |\ |\ |\ |\ |\ |\ |\ |\
banks. They are limited, with a more institutional focus.
|\ |\ |\ |\ |\ |\ |\ |\
Trust company - CORRECT ANSWERS ✔✔acts as a trustee.
|\ |\ |\ |\ |\ |\ |\ |\
Auction market - CORRECT ANSWERS ✔✔market in which
|\ |\ |\ |\ |\ |\ |\ |\
securities are bought and sold by brokers acting as agents for their
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
clients (stock exchanges).
|\ |\ |\
Dealer market - CORRECT ANSWERS ✔✔a network of
|\ |\ |\ |\ |\ |\ |\ |\
marketplaces. Here, trades are conducted OTC and consist of |\ |\ |\ |\ |\ |\ |\ |\ |\
bonds and debentures.
|\ |\
Equity electronic trading system - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔competes with existing exchanges. They can only trade stocks |\ |\ |\ |\ |\ |\ |\ |\ |\
that are on an existing exchange. They may have benefits such as
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
different hours, better commission, etc.
|\ |\ |\ |\
Fixed-income electronic trading system - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\
✔✔where almost all bonds are traded (such as CanDeal).
|\ |\ |\ |\ |\ |\ |\ |\
Structured product - CORRECT ANSWERS ✔✔has the |\ |\ |\ |\ |\ |\ |\
characteristics of debt, equity, and the investment fund (can be in |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the form of principal-protected notes or index-linked guarantees).
|\ |\ |\ |\ |\ |\ |\
, IIROC (Investment Industry Regulatory Organization of Canada) -
|\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔the Canadian investment industry's SRO.
|\ |\ |\ |\ |\ |\ |\
It carries out its responsibilities through setting and enforcing rules
|\ |\ |\ |\ |\ |\ |\ |\ |\
regarding the proficiency, business, and financial conduct of
|\ |\ |\ |\ |\ |\ |\ |\ |\
dealer firms and their registered employees.
|\ |\ |\ |\ |\
MFDA (Mutual Fund Dealers Association) - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔the SRO that regulates the distribution (dealer) side of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
mutual fund industry in Canada. |\ |\ |\ |\
OSFI (Office of the Superintendent of Financial Institutions) -
|\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔the federal regulatory agency whose main
|\ |\ |\ |\ |\ |\ |\
responsibilities regarding insurance companies and segregated
|\ |\ |\ |\ |\ |\ |\
funds are to ensure that the companies issuing the funds are
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
financially solvent. |\
CDIC (Canadian Deposit Insurance Corporation) - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔a federal Crown Corporation providing deposit |\ |\ |\ |\ |\ |\ |\
insurance against loss (up to $100,000 per depositor) when a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
member institution fails. |\ |\
CIPF (Canadian Investor Protection Fund) - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\
✔✔a fund that protects eligible customers in the event of the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
insolvency of an IIROC dealer member. |\ |\ |\ |\ |\ |\
General acct. = $1M total |\ |\ |\ |\
Separate acct. = $1M each |\ |\ |\ |\
