Canadian Securities Course (CSC) Level 1 Practice Exam 2025 – All-In-One Guide to Master Your Exam Prep!

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.