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.

Who is the OSFI and what are its functions?

An international organization regulating stock exchanges
A department within the Ministry of Transportation
An independent agency contributing to the safety of the Canadian Financial system by regulating deposit taking banks, insurance companies, and more.
An advertising agency promoting financial services

The correct answer is: An independent agency contributing to the safety of the Canadian Financial system by regulating deposit taking banks, insurance companies, and more.

The correct answer highlights the role of the Office of the Superintendent of Financial Institutions (OSFI) as an independent agency that plays a crucial role in maintaining the stability and safety of the Canadian financial system. OSFI’s main functions include regulating and supervising federally regulated financial institutions, which encompasses deposit-taking banks, insurance companies, and pension plans. Through these responsibilities, OSFI ensures that these institutions operate safely and soundly, thereby fostering public confidence in the financial system and protecting the interests of depositors and policyholders. This oversight is vital for the overall integrity of Canada’s financial sector, making the agency's contribution significant for economic stability. The other options incorrectly characterize OSFI’s role and functions. An international organization regulating stock exchanges does not describe OSFI’s mandate; it focuses on domestic financial institutions rather than stock market regulation. A department within the Ministry of Transportation misrepresents OSFI’s independence and functions, as it has no affiliation with transportation but rather with financial institutions. Similarly, describing OSFI as an advertising agency promoting financial services ignores its regulatory and supervisory duties, which are critical for ensuring the health of the financial sector.