Canadian Securities Course (CSC) Level 1 Practice Exam

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Prepare for the Canadian Securities Course (CSC) Level 1 Exam. Engage with our quizzes, flashcards, and multiple-choice questions, complete with hints and explanations to help you succeed!

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What are the 3 characteristics of capital?

Stability, predictability, and abundance
Liquidity, transparency, and diversification
Mobility, sensitivity, and scarcity
Risk, return, and maturity

The correct answer is: Mobility, sensitivity, and scarcity

Capital is characterized by its mobility, sensitivity, and scarcity. - Mobility refers to how easily capital can be moved or transferred between different assets or investments. - Sensitivity implies that capital can be impacted by various external factors or changes in the market. - Scarcity highlights that capital is limited and in demand, which can affect its value and availability in the market. The other options are not correct: - Option A (Stability, predictability, and abundance) does not fully capture the essence of capital as these characteristics do not specifically define capital. - Option B (Liquidity, transparency, and diversification) includes important characteristics of investments but does not fully encompass the overall characteristics of capital. - Option D (Risk, return, and maturity) focuses more on the aspects related to investments and financial instruments rather than the broader concept of capital.