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 is the primary role of the Canadian Investor Protection Fund (CIPF)?

Providing investment advice to individuals
Oversight of the education sector
Ensuring the safety of the Canadian Financial system
Primarily ensuring investor protection

The correct answer is: Primarily ensuring investor protection

The correct answer is D: Primarily ensuring investor protection. The primary role of the Canadian Investor Protection Fund (CIPF) is to protect investor assets in the event of insolvency of a member firm. The CIPF provides coverage to eligible clients in case a member firm is unable to return their assets due to financial problems. This protection helps instill confidence in the Canadian financial markets and protects investors against potential losses. Options A, B, and C are incorrect because the CIPF's main focus is on safeguarding investor funds and assets rather than providing investment advice, overseeing the education sector, or ensuring the safety of the Canadian financial system as a whole.