Canadian Securities Course (CSC) Practice Exam · Question
A client is looking to invest in a security that trades on an exchange, offers diversification, and has a lower management expense ratio compared to many traditional mutual funds. Which product would best fit these criteria?
ETFs trade on exchanges, offer diversification similar to mutual funds, and are often known for their lower management expense ratios compared to actively manag
Start free practice for Canadian Securities Course (CSC) Practice Exam
335 questions · no signup required · 40 free questions per day
Question: A client is looking to invest in a security that trades on an exchange, offers diversification, and has a lower management expense ratio compared to many traditional mutual funds. Which product would best fit these criteria?
Answer options: ✅ Exchange-Traded Fund (ETF)
- Segregated Fund
- Hedge Fund
- Guaranteed Investment Certificate (GIC)
Correct answer: Exchange-Traded Fund (ETF)
Explanation: ETFs trade on exchanges, offer diversification similar to mutual funds, and are often known for their lower management expense ratios compared to actively managed mutual funds.
Start free practice for Canadian Securities Course (CSC) Practice Exam
335 questions · no signup required · 40 free questions per day
More about Canadian Securities Course (CSC) Practice Exam
More for Canadian Securities Course (CSC) Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Canadian Securities Course (CSC) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.