Ace the Canadian Securities Course 2025 - Rock the CSC Practice Exam!

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What is the characteristic of Instalment GICs?

An initial lump sum contribution is made

The characteristic of Instalment GICs is that an initial lump sum contribution is made, which sets it apart from other options. Option B relates to market-linked GICs, C is true for Term Deposits and D is a feature of Index-linked GICs. Instalment GICs are designed for investors who want to gradually save money while receiving a guaranteed rate of return. They allow for convenient contributions at regular intervals and also provide the security of a guaranteed return of the initial investment at maturity. So, while the other options may also have attractive features, only option A accurately describes the distinguishing characteristic of Instalment GICs.

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Interest rates linked to other rates

Guaranteed return of initial investment at expiry

Offer exposure to equity markets

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