A NOTAM has been published for an airport, which is 400 feet ASL, stating the circuit height is 1,500 feet ASL. When the ceiling is 1,000 overcast and the visibility is 3 miles, the circuit height in controlled airspace should be
Why this is the answer
Per CAR 602.114, within a control zone an aircraft must stay 500 ft vertically from cloud. With a 1,000-ft overcast, the circuit must be flown 500 ft below the cloud base to remain VFR, even though that is below the NOTAM'd 1,500 ft.
Reference
CARs 602.114 – Minimum Visual Meteorological Conditions for VFR Flight
Question reproduced verbatim from Transport Canada’s PSTAR Study and Reference Guide (TP 11919E). The answer key is Transport Canada’s; the explanation is ours.
A study aid — not a substitute for the official guide, the CARs, or your instructor.