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CSI Investment Funds in Canada (IFC) Exam IFC Question # 53 Topic 6 Discussion

CSI Investment Funds in Canada (IFC) Exam IFC Question # 53 Topic 6 Discussion

IFC Exam Topic 6 Question 53 Discussion:
Question #: 53
Topic #: 6

Steven has some extra cash to invest and wonders if a PPN issued by a large Canadian bank might suit his objectives. Steven wants to earn a higher return than his savings account and protect his capital. While Steven is planning on investing for a longer time horizon, he is also looking to purchase a cabin in the shorter term. He may need access to his funds on short notice if he finds the right property. What is the most significant risk present for Steven when considering PPNs?


A.

Credit.


B.

Participation.


C.

Currency.


D.

Liquidity.


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