Canadian Securities Course (CSC) Level 1 Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Canadian Securities Course Level 1 Exam with our comprehensive study tool. Use flashcards and multiple choice questions to hone your skills. Fully understand each topic with hints and explanations. Get ready to excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the difference between a forward and a future?

They are interchangeable terms
Forward is only for commodities, futures for stocks
Forward is OTC, futures are traded on exchanges
Future is only for currencies, forward for stocks

The correct answer is: Forward is OTC, futures are traded on exchanges

The correct answer is C. Forward contracts are traded over-the-counter (OTC), meaning they are customizable contracts between two parties. On the other hand, futures contracts are standardized and traded on exchanges, providing more liquidity and transparency due to their centralized clearing. This distinction between OTC trading for forwards and exchange-trading for futures is a key differentiating factor between the two types of contracts.