Canadian Securities Course (CSC) Practice Exam 2025 - Free CSC Practice Questions and Study Guide

Question: 1 / 400

What defines a Banker's Acceptance in financial terms?

the interest rate for these GICs increases over the term.

a short-term corporate money market security.

a short-term commercial draft sold at a discount.

Banker's Acceptance in financial terms refers to a short-term commercial draft that is sold at a discount. This means that the holder of the draft can receive the full face value of the draft at maturity, despite purchasing it at a discounted price. Option A may be incorrect because it mentions GICs, which stands for Guaranteed Investment Certificates and may not necessarily be related to Banker's Acceptances. Option B may be incorrect because it refers to a "corporate" money market security, while Banker's Acceptances can also be issued by governments or other financial institutions. Option D may be incorrect because it refers to Government of Canada bonds, which are a type of fixed income security, rather than commercial drafts. Therefore, the most accurate definition of a Banker's Acceptance is provided in option C.

Get further explanation with Examzify DeepDiveBeta

Government of Canada bonds that mature in 3-month, 6-month, or 12-month maturities.

Next Question

Report this question

Download Canadian Securities Course (CSC) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy