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: Dec 08, 2025

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Question 1

Which of the following best describes the relationship between liquidity and flexibility in managed products?

A : Low liquidity is directly correlated with high flexibility.

B : There is no relationship between liquidity and flexibility.

C : High liquidity always equals high flexibility.

D : High flexibility can sometimes lead to lower liquidity.

Answer: D

Question 2

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

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 has current assets of $10,000,000 and current liabilities of $4,000,000. If the company has an inventory worth $2,000,000, what is the company's quick ratio?

A : 2.00.

B : 1.25.

C : 1.00.

D : 1.50.

Answer: A

Question 5

John is considering investing in a Canadian equity mutual fund. He notices that the fund's name suggests a focus on Canadian stocks. However, upon reviewing the fund's portfolio, he discovers that only 60% of its assets are invested in Canadian equities, with the rest in U.S. stocks. What issue might this create for John's investment strategy?

A : The fund may have higher risk than expected due to its international exposure.

B : The fund's performance may not align with other Canadian equity funds, complicating peer group comparisons.

C : The fund may be more volatile due to currency fluctuations between Canada and the U.S.

D : The fund might underperform during periods of Canadian market growth due to its diversified portfolio.

Answer: B

Page: 1 / 157

Total 785 Questions | Updated On: Dec 08, 2025

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