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Canadian Securities Course · Last updated October 2026

Canadian Securities Course (CSC) Exam 1: free practice test

The first of the two CSC exams covers the marketplace, the economy, bonds, shares, derivatives, financial statements and how companies raise capital. Since 1 January 2026 the CSC no longer qualifies new investment dealer representatives with CIRO, but it's still accepted for mutual fund and exempt market dealer representatives and remains a respected finance credential.

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About the CSC Exam 1 exam

The first of the two CSC exams covers the marketplace, the economy, bonds, shares, derivatives, financial statements and how companies raise capital. Since 1 January 2026 the CSC no longer qualifies new investment dealer representatives with CIRO, but it's still accepted for mutual fund and exempt market dealer representatives and remains a respected finance credential.

What's on the exam

CSC Exam 1
The Canadian Securities Marketplace
5 key facts
The Canadian Economy
5 key facts
Features of Fixed-Income Securities
5 key facts
Pricing and Trading Fixed-Income Securities
5 key facts
Common and Preferred Shares
5 key facts
Equity Transactions
5 key facts
Derivatives
5 key facts
Corporations and Their Financial Statements
5 key facts
Financing and Listing Securities
5 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the CSC Exam 1 exam

  • 100 questions in 2 hours is 1 minute 12 seconds each. Bond pricing and yield questions take longer, so bank time on the definition questions.
  • You need 60% on each exam, and CSI gives you three attempts per exam within your enrolment period.
  • Learn the bond-price/yield seesaw until it's automatic: when yields rise, prices fall, and longer bonds move more.
  • Preferred share features (cumulative, retractable, convertible, callable) come up often. Know who each feature benefits.

Save your results and get your Readiness Score

Create a free account after the test: your score by topic, a mistakes bank, the complete study notes for the first topic, flashcards and the Canadian Securities Key Numbers Sheet.

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What's in the premium CSC Exam 1 prep

Premium CSC Exam 1 prep is studied one topic at a time. Each step starts with that topic's key notes and flashcard deck, then its own question sets of 25, so you master one topic before you move to the next. When every topic is strong, the 6 full mock exams show you're ready.

3,000practice questions, every answer explained
6full-length mock exams, 100 questions each, timed
800flashcards with spaced repetition, sorted by topic
60comprehensive key notes across 9 topics

Your step-by-step study path

  1. 1
    The Canadian Securities Marketplace7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25
    Notes free with an account
  2. 2
    The Canadian Economy7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25
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  3. 3
    Features of Fixed-Income Securities7 key notes, 90 flashcards, then 350 practice questions in 14 sets of 25
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  4. 4
    Pricing and Trading Fixed-Income Securities7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25
    Premium
  5. 5
    Common and Preferred Shares7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25
    Premium
  6. 6
    Equity Transactions7 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25
    Premium
  7. 7
    Derivatives6 key notes, 90 flashcards, then 325 practice questions in 13 sets of 25
    Premium
  8. 8
    Corporations and Their Financial Statements6 key notes, 85 flashcards, then 325 practice questions in 13 sets of 25
    Premium
  9. 9
    Financing and Listing Securities6 key notes, 85 flashcards, then 325 practice questions in 13 sets of 25
    Premium
  10. Final step: 6 full mock exams100 questions each, timed like test day. Pass them, then book your exam.
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Free with an account

Read the complete CSC Exam 1 study notes for “The Canadian Securities Marketplace”

Our first full set of comprehensive notes, about 10 minutes of reading: How the system is regulated · Primary and secondary markets · Investor protection · Who's who among market participants, a worked exam example, the traps examiners use and a one-minute recap. Create a free account to read it and see how premium notes work before you decide.

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Study tools included

3,000 practice questions

3,000 exam-style questions per exam, organized topic by topic in sets of 25. Every answer explained, with the rule it comes from.

6 full mock exams

6 full-length timed mock exams per exam, with real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

800 flashcards + spaced repetition

800 flashcards per exam, in a deck for each topic, that come back right before you'd forget them. Five minutes a day keeps every number fresh.

60 comprehensive key notes

60 key notes per exam, split across its topics and each explained in full: the concepts, worked exam examples, the traps examiners use and a quick recap. Your first set is free with an account.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. Which organization is the national self-regulatory organization for investment dealers and mutual fund dealers in Canada?
Answer: CIRO (Canadian Investment Regulatory Organization). CIRO, formed in 2023 from IIROC and the MFDA, oversees investment dealers, mutual fund dealers and trading on Canadian marketplaces. Provincial securities commissions oversee CIRO.
2. An investor's account at a CIRO member firm is protected by CIPF if the firm becomes insolvent. CIPF coverage is up to:
Answer: C$1 million for each separate account category. CIPF covers up to C$1 million for general accounts combined, and a separate C$1 million for each of the other categories, such as registered retirement accounts and registered education savings plans.
3. When the Bank of Canada wants to slow inflation, it is most likely to:
Answer: Raise the target for the overnight rate. Raising the overnight rate target makes borrowing more expensive, slowing spending and inflation. Tax and spending changes are fiscal policy, set by governments.
4. A bond pays a nominal return of 5% in a year when inflation is 3%. Its approximate real return is:
Answer: 2%. Real return ≈ nominal return − inflation = 5% − 3% = 2%.
5. A Government of Canada Treasury bill pays no coupon. The investor's return comes from:
Answer: Buying it at a discount and receiving full face value at maturity. T-bills are sold at a discount to face value. The difference between the price paid and the face value at maturity is the return, taxed as interest.
6. A bond that the issuer can redeem before maturity at a set price is:
Answer: A callable (redeemable) bond. The call feature benefits the issuer, which can redeem the bond when rates fall. Retractable and extendible features benefit the holder.
7. Market interest rates rise sharply. What generally happens to the prices of existing bonds?
Answer: They fall. Bond prices move inversely to yields. Existing bonds with lower coupons become less attractive, so their prices fall until their yield matches the market.
8. A bond with a C$1,000 face value and a 6% annual coupon trades at C$960. Its current yield is about:
Answer: 6.25%. Current yield = annual coupon ÷ price = C$60 ÷ C$960 = 6.25%.
9. A cumulative preferred share means that:
Answer: Dividends missed in earlier years must be paid before any common share dividend. Unpaid dividends on cumulative preferreds accrue as arrears, which must be paid before common shareholders receive dividends.
10. A Canadian investor holding eligible dividends from Canadian corporations in a non-registered account benefits from:
Answer: The dividend tax credit. Eligible Canadian dividends are grossed up and then reduced by the federal and provincial dividend tax credits, giving a lower effective rate than interest income.
11. Since May 2024, regular trades in Canadian equities settle on:
Answer: T+1. Canada and the US moved most equity and long-term debt trades from T+2 to T+1 settlement in May 2024.
12. An investor sells short 500 shares at C$40 and later buys them back at C$32. Ignoring costs, the result is:
Answer: A C$4,000 profit. A short seller profits when the price falls: (40 − 32) × 500 = C$4,000. The risk is unlimited if the price rises.
13. The buyer of a call option has:
Answer: The right, but not the obligation, to buy the underlying at the strike price. Call buyers pay a premium for the right to buy. The call writer (seller) takes on the obligation to sell if the option is exercised.
14. A company's current ratio is calculated as:
Answer: Current assets ÷ current liabilities. The current ratio measures liquidity: whether short-term assets can cover short-term obligations. Below 1 can signal a liquidity problem.
15. Before a company can distribute new securities to the public in a Canadian province, it generally must file:
Answer: A prospectus receipted by the securities regulator. A public distribution requires a prospectus with full, true and plain disclosure, unless a prospectus exemption applies (as in the exempt market).

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Certification guide

CSC exam guide (2026): The Canadian Securities Course is split into two exams. Each has 100 multiple-choice questions, 2 hours and a 60% pass mark. Exam 1 covers markets, the economy and the main products; Exam 2 covers analysis, portfolios, managed products, tax and working with clients.

CSC Exam 1 exam FAQ

How many questions are on the CSC Exam 1 exam?

100 multiple-choice questions, with a time limit of 2 hours. Format: closed book, computer-based.

What is the passing score for CSC Exam 1?

60%.

How much does the CSC Exam 1 exam cost?

Included in the CSC enrolment set by CSI (packages have been listed at roughly C$1,000 to C$1,400 for both exams); check CSI before you enrol. Fees change, so confirm with CSI or CIRO before you enrol.

Which languages is the CSC Exam 1 exam offered in?

English and French.

Where do I take the CSC Exam 1 exam?

Remote proctoring or an in-person test centre, booked through CSI.

Is this CSC Exam 1 practice test free?

Yes. The 15-question practice test on this page is free, with an explanation for every answer and no signup. A free account also unlocks the complete study notes for the first topic. The full CSC Exam 1 prep is Premium at C$207 a month for this exam.

What's in the premium CSC Exam 1 prep?

3,000 practice questions organized topic by topic (The Canadian Securities Marketplace: 350; The Canadian Economy: 350; Features of Fixed-Income Securities: 350; Pricing and Trading Fixed-Income Securities: 325; Common and Preferred Shares: 325; Equity Transactions: 325; Derivatives: 325; Corporations and Their Financial Statements: 325; Financing and Listing Securities: 325), 6 full-length timed mock exams of 100 questions, 800 flashcards and 60 comprehensive key notes split across all 9 topics, plus a mistakes bank and the Readiness Score.

Compare CSC Exam 1 with other Canadian licensing exams

Related practice tests

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Canadian Securities Course (CSC) Exam 2

The second CSC exam turns from products to advice: analysing companies, building portfolios, mutual funds and ETFs, alternative and structured products, Canadian investment taxation, fee-based accounts and institutional clients.

15 free questions3,000 premium Qs · 6 mocks · 800 flashcards · 60 key notes
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Exam details are summarized from the official candidate information available in October 2026. CSI or CIRO changes formats and fees, so confirm with Canadian Securities Institute (CSI) before you book. CSCQuizBank is not affiliated with CSI, CIRO or Fitch Learning.

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