CSI CSC2 Exam Questions (Updated 2026) 100% Real Question Answers [Q96-Q117]

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CSI CSC2 Exam Questions (Updated 2026) 100% Real Question Answers

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QUESTION 96
What type of return is calculated for a security held for 18 months if no adjustments to the return are made?

Effective rate of return.

Nominal rate of return.

Annualized total return.

Holding period return.

QUESTION 97
According to the Bank of Canada, approximately how many months does it take for the effect of changes in monetary policy to be felt through the whole economy?

QUESTION 98
What responsibility falls on the buy-side portfolio manager?

To busy securities in the market on demand to maintain liquidity in a security.

To maintain constant contact with the investment dealer counterparties.

To inform the trade about the market conditions and risks.

To provide pertinent market information to the department heads of various asset classes.

QUESTION 99
Which macroeconomic factors would have a positive impact on investor expectations and the price of securities?

Targeting certain sectors of the economy with monetary policy measures and tax breaks.

Increased taxes on corporations with the goal of lower government debt.

Low levels of government debt and consumer indebtedness.

A decrease in government spending with corresponding tax outs to individuals.

QUESTION 100
How does beta help assess the risk of a mutual fund?

Compares management expense ratios.

Monitors trading volumes.

Measures comparative performance.

Relates its returns to the underlying markets.

QUESTION 101
What does a simplified prospectus typically allow a fund company to do?

Quality one or more mutual funds for sale.

Provide up-to-date holding information to the public.

Replace the financial reporting documents.

To quality a real property funds for sale.

QUESTION 102
Tracy invests $12,000 in a five-year PPN linked to the S&P/TSX 60, with a participation rate of 75% and a performance cap of 27%. On the issue date of the PPN, the index level was 825, and at the PPN’s maturity, the level was 1,200. How much will Tracy receive upon the PPN’s maturity?

$14,813

$17,455

$16,091

$15,240

QUESTION 103
Which investor right must be disclosed in a Fund Fact document?

Investors have the right to rescind the purchase if these is misrepresentation in the document.

Investors have a right to withdrawal from their purchase within 24 hours after confirmation of the purchase is received.

Investors can request a paper copy of the simplified prospectus for a small charge.

Investors have the right to act or claim damages without any limitation.

QUESTION 104
An advisor to explain the benefits of labour sponsored funds (LSVCC) to some of his clients.
With which client should the advisor have this discussion?

Client 2

Client 4

Client 1

Client 3

QUESTION 105
Which macroeconomic factors would have a positive impact on investor expectations and the price of securities?

Targeting certain sectors of the economy with monetary policy measures and tax breaks.

Increased taxes on corporations with the goal of lower government debt.

Low levels of government debt and consumer indebtedness.

A decrease in government spending with corresponding tax outs to individuals.

QUESTION 106
What type of risk were mortgage-backed securities designed to address?

Liquidity

Interest rate

Rollover

Prepayment

QUESTION 107
Omar invests $5,000 in a labour-sponsored venture capital corporation (LSVCC) in Ontario, his province of residence. What is the total LSVCC tax credit that Omar is eligible to receive from this investment?

$1,500

$750

$1,625

$875

QUESTION 108
The consumer price index was 125.9 in December of last year and 123.0 in December of the year before What was the inflation rate last year?

2.36%

2.30%

0.98%

1.02%

QUESTION 109
How are investment dealers unique participants in the institutional market?

They manage pools of assets on behalf of beneficiaries.

They act on both they buy side and sell side.

They produce research reports.

They manage a firm’s financial assets in support of a company’s business activities.

QUESTION 110
TRU Fund portfolio manager decided to deviate from the portfolio long-term target asset mix in order to capitalize on investment opportunities in the domestic bond market. What type of asset allocation is the TRU Fund portfolio manager using?

Strategic.

Tactical.

Timing.

Dynamic.

QUESTION 111
Jerry sells Company A’s regular bond because the thinks it is overvalued. Using the proceeds from the sale, jerry then busy Company A’s convertible bond because the thinks that the equity component is undervalued and that he convertible bond’s coupon rate is relatively attractive given his forecast of falling interest rates.
What fixed-come management style is jerry most likely using?

Market timing.

Interest rate anticipation.

Bond swap

Immunization

QUESTION 112
Supriya, an advisor, receives a research service from a dealer in exchange for placing securities transactions with that dealer. What statement best applies to this type of arrangement?

This arrangement is permissible if it benefits Supriya’s firm.

This arrangement can only be used for equity transactions.

This arrangement needs to be disclosed to Supriya’s clients.

This arrangement violates best execution requirements.

QUESTION 113
In a multi-mandate managed account, who sets the overall optimal asset mix?

Investment advisor

Sub-advisor

Client

Overlay manager

QUESTION 114
Which type of sell side equity revenue is earned when a dealer acts in the capacity of an agent in clients trade?

Fees

Spreads

Interest

Commission

QUESTION 115
For what type of company is the dividend discount model least applicable?

One with changing dividend payments and a stable dividend growth rate.

One with stable dividend payments and a stable dividend growth rate.

One with stable dividend payments and a fluctuating dividend growth rate.

One with changing dividend payments and a fluctuating dividend growth rate.

QUESTION 116
Anwar is placing a market order to purchase 100 shares of AJL when the bid/ask is $10.25.”$ 10.75. Before the trade is complete, the bid/ask moves to $10.207S1Q70. What is the share price that Anwar will pay on the purchase transaction?

$10.70

$10.75

$10.29

$10.20

QUESTION 117
What is the main advantage ETFs have over mutual funds?

Flexible dividend reinvestment

Improved tax efficiency

Active management

Ability to set up pre-authorized contributions

CSI CSC2 Exam Syllabus Topics:

Topic	Details
Topic 1	Portfolio Analysis: This section of the exam measures the skills of a Portfolio Manager and covers portfolio management approaches including risk and return measurement, portfolio optimization strategies, management styles, and the complete portfolio management process from objective setting to performance evaluation and rebalancing.
Topic 2	The Canadian Investment Marketplace: This section of the exam measures the skills of a Securities Industry Professional and covers the structure and operation of Canada’s investment marketplace. It includes the roles of investment dealers and financial intermediaries, capital market functions, financial instruments, and the complete Canadian regulatory environment with its regulatory bodies, principles of regulation, client remediation options, and ethical standards for financial services professionals.
Topic 3	The Corporation: This section of the exam measures the skills of a Corporate Finance Analyst and covers corporate structures, financial statements, disclosure requirements, investor rights, financing methods, capital raising processes, prospectus requirements, securities distribution, and exchange listing procedures for corporations.
Topic 4	The Economy: This section of the exam measures the skills of an Economic Analyst and covers fundamental economic concepts including microeconomics and macroeconomics, economic growth measurement, business cycles, labor markets, interest rates, inflation, international trade, and both fiscal and monetary policy with emphasis on the Bank of Canada’s role and government policy challenges.