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 trust deeds?

Legal agreements with competitors
A contract to secure interest rates
Safeguards against issuer financial weakening
Trust funds for shareholder protection

The correct answer is: Safeguards against issuer financial weakening

Trust deeds refer to safeguards against issuer financial weakening. These documents are created to protect debenture holders by outlining the terms and conditions of the debt, the obligations of the issuer, and the rights of the debenture holders in case the issuer faces financial difficulties. Options A, B, and D are incorrect as they do not accurately describe what trust deeds are in the context of securities and investments.