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Free CSC Practice Questions (2026) — Test Yourself Now
Want to know if you're ready for the Canadian Securities Course? Below are 6 free, exam-style practice questions covering core CSC topics — bonds, equities, mutual funds, and client suitability. Read each question, pick your answer, then tap "Show answer" for the correct choice and a plain-language explanation. When you're done, you can unlock 3,800+ more CSC practice questions (Exam 1 and Exam 2) in the SmartExam app.
These questions are written by SmartExam and are for study practice only. They are not actual exam questions.
Question 1 — Bonds & interest rates
When market interest rates rise, what typically happens to the price of an existing bond?
- A) Its price rises
- B) Its price falls
- C) Its price stays exactly the same
- D) Its price doubles
Show answer
Correct answer: B — Its price falls.
Bond prices move inversely to interest rates. When newly issued bonds start paying higher rates, an older bond paying a lower rate becomes less attractive — so its market price drops until its yield lines up with the new, higher market rate.
Question 2 — Common vs preferred shares
Which right does a common shareholder typically have that a preferred shareholder usually does not?
- A) The right to receive dividends
- B) The right to vote at shareholder meetings
- C) A claim on the company's assets
- D) Part ownership of the company
Show answer
Correct answer: B — Voting at shareholder meetings.
Common shares usually carry voting rights. Preferred shares generally do not vote, but in exchange they rank ahead of common shares for dividends and for repayment if the company is wound up.
Question 3 — Mutual fund NAV
A mutual fund's Net Asset Value (NAV) per unit is best described as:
- A) The fund's total assets minus its liabilities, divided by units outstanding
- B) The highest price a unit traded at in the past year
- C) The total dividends the fund paid last year
- D) The management fee the fund charges
Show answer
Correct answer: A.
NAV per unit = (total assets − total liabilities) ÷ number of units outstanding. It's normally calculated once at the end of each trading day, and it's the price at which units are bought and redeemed.
Question 4 — Know Your Client (KYC)
Under the Know Your Client rule, before recommending an investment an advisor must above all ensure the recommendation is:
- A) The product that pays the highest commission
- B) Suitable for the client's objectives and risk tolerance
- C) The most popular product that month
- D) Approved by the client's employer
Show answer
Correct answer: B — Suitable for the client.
KYC and the suitability obligation require recommendations to fit the client's financial situation, investment objectives, risk tolerance, and knowledge — never the advisor's own compensation.
Question 5 — Types of orders
An investor places a limit order to buy a stock at $20. This order will:
- A) Execute immediately at any available price
- B) Execute only at $20 or lower
- C) Execute only at $20 or higher
- D) Never execute
Show answer
Correct answer: B — at $20 or lower.
A limit buy order sets the maximum price you're willing to pay. It fills at your limit or better (lower) — but won't fill above it. (By contrast, a market order fills right away at the best price currently available.)
Question 6 — Risk and return
Compared with a high-quality government bond, the common shares of a company generally offer:
- A) Lower potential return and lower risk
- B) Higher potential return and higher risk
- C) A guaranteed fixed interest payment
- D) Priority repayment if the company goes bankrupt
Show answer
Correct answer: B — Higher potential return and higher risk.
Equities sit higher on the risk/return ladder than high-quality bonds: more upside potential, but no guaranteed income, and shareholders are last in line if the company is wound up.
How did you do?
- 5–6 correct: You've got a solid grip on the fundamentals — keep practising to build speed and cover the trickier topics (derivatives, portfolio management, taxation).
- 3–4 correct: A good base, but there are gaps worth closing before exam day.
- 0–2 correct: Don't worry — this is exactly what studying is for. The fastest way to improve is lots of practice questions with explanations, not more re-reading.
The catch with the real CSC is that it's 200 questions across two exams, and six questions can't tell you where your real weak spots are. That's where practising at scale makes the difference.
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- 3,800+ exam-style CSC questions across Exam 1 and Exam 2 — far beyond a quick quiz
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- 20, 50, or 100-question sessions to fit your schedule
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New to the CSC? Read our honest guide: Is the CSC Exam Hard?
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