Free CSI CSC2 Exam Questions

Become CSI Certified with updated CSC2 exam questions and correct answers

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Total 785 Questions | Updated On: Jun 16, 2026

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Question 1

A major institutional trade fails to settle within the T+2 timeline due to discrepancies in trade details. What is the most likely underlying cause?

A : Overly complex investment strategies.

B : Miscommunication between the dealer and custodian.

C : Lack of a real-time STP system.

D : Delayed trade confirmation by the investment manager.

Answer: C

Question 2

How do mutual funds compare to other investment options regarding liquidity?

A : Mutual funds offer limited liquidity due to redemption restrictions.

B : Mutual funds lack liquidity as they require a lengthy redemption process.

C : Mutual funds grant shareholders the right to redeem shares for cash within two business days.

D : Mutual funds provide immediate liquidity with same-day redemption.

Answer: C

Question 3

Which of the following best describes the impact of high tax rates on the choice between interest income and dividends?

A : High tax rates have no impact on the choice between interest income and dividends.

B : High tax rates make dividends more attractive due to their tax credit.

C : High tax rates make both interest income and dividends equally unattractive.

D : High tax rates favor interest income due to its tax-free nature.

Answer: B

Question 4

A company unexpectedly announces a new product launch, which leads to an immediate and significant increase in its stock price. An investor who learns about the product launch a few hours later decides to buy the stock, expecting the price to continue rising. However, the price remains stable after the initial surge.Which market theory does this scenario best support?

A : Strong form of Efficient Market Hypothesis.

B : Rational Expectations Hypothesis.

C : Semi-Strong form of Efficient Market Hypothesis.

D : Random Walk Theory.

Answer: C

Question 5

Monica has surplus cash and wants to invest it in a fund with short-term maturity securities to minimize interest rate risk. She prefers lower volatility and liquidity for her investments. Which mutual fund type would be the most suitable option for Monica?

A : Preferred dividend fund.

B : Mortgage fund.

C : Money market fund.

D : Fixed income fund.

Answer: C

Page: 1 / 157

Total 785 Questions | Updated On: Jun 16, 2026

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