Question 1

Securities that are not traded on the organized stock exchanges are traded in which of the following markets?

Accepted Answer

A)  the futures market 
B)  the dealers' market 
C)  the over-the-counter market 
D)  the primary market 
A)  the futures market 
B)  the dealers' market 
C)  the over-the-counter market 
D)  the primary market

Question 2

What are demand deposits?

Accepted Answer

money kept

Question 3

Which of the following is a financial service that pools its investors' funds to buy a selection of securities and provide professional investment management?

Accepted Answer

A)  a debenture 
B)  a blue-chip investment 
C)  a futures contract 
D)  a mutual fund 
A)  a debenture 
B)  a blue-chip investment 
C)  a futures contract 
D)  a mutual fund

Question 4

Which of the following are agreements to buy or sell specified quantities of commodities or financial instruments at an agreed price at a future date?

Accepted Answer

A)  futures contracts 
B)  mutual debenture contracts 
C)  options contracts 
D)  on-time contracts 
A)  futures contracts 
B)  mutual debenture contracts 
C)  options contracts 
D)  on-time contracts

Question 5

The interest rate specified on the bond that the company must pay the bondholder is known as which of the following?

Accepted Answer

A)  the premium rate 
B)  the dividend 
C)  the coupon rate 
D)  the discount rate 
A)  the premium rate 
B)  the dividend 
C)  the coupon rate 
D)  the discount rate

Question 6

Futures contracts are best described by which of the following?

Accepted Answer

A)  They are a way to buy common shares on a margin. 
B)  They appeal to investors because they are sure providers of retirement income. 
C)  They do not pay dividends. 
D)  They are good investments for risk-aversive investors. 
A)  They are a way to buy common shares on a margin. 
B)  They appeal to investors because they are sure providers of retirement income. 
C)  They do not pay dividends. 
D)  They are good investments for risk-aversive investors.

Question 7

The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?

Accepted Answer

A)  preferred shares 
B)  common shares 
C)  convertible preferred shares 
D)  convertible bonds 
A)  preferred shares 
B)  common shares 
C)  convertible preferred shares 
D)  convertible bonds

Question 8

Durability and simplicity are two important characteristics of money.

Accepted Answer

A) True 
 B)False

Question 9

For money to be an acceptable medium of exchange which of the following are necessary?

Accepted Answer

A)  It must be scarce, divisible, portable, and durable. 
B)  It must be distributable, durable, comparable, and valuable. 
C)  It must be portable, sortable, valuable, and divisible. 
D)  It must be compatible, comparable, scarce, sortable. 
A)  It must be scarce, divisible, portable, and durable. 
B)  It must be distributable, durable, comparable, and valuable. 
C)  It must be portable, sortable, valuable, and divisible. 
D)  It must be compatible, comparable, scarce, sortable.

Question 10

Jayson Smith is a recent college graduate who found himself in debt as a result of credit card expenditures and is in need of dependable transportation.Smith recently purchased a new motorcycle from Watt Cycles.In financing the cycle,Smith found that he would be making payments to Beneficial Corp.,a company that deals in poor credit risks and short-term loans.Smith was dealing with which of the following?

Accepted Answer

A)  a savings bank 
B)  a finance company 
C)  a savings and loan association 
D)  a commercial bank 
A)  a savings bank 
B)  a finance company 
C)  a savings and loan association 
D)  a commercial bank

Question 11

What is the most important function of the Bank of Canada?

Accepted Answer

the carryi

Question 12

Holders of preferred shares enjoy which of the following advantages?

Accepted Answer

A)  They vote, but stand last in line for dividends. 
B)  They elect the board of directors. 
C)  They receive a fixed dividend. 
D)  They receive dividends before bondholders receive interest. 
A)  They vote, but stand last in line for dividends. 
B)  They elect the board of directors. 
C)  They receive a fixed dividend. 
D)  They receive dividends before bondholders receive interest.

Question 13

Tameika Wilson owns 100 shares of Telus Mobility.Last year Telus Mobility sent her four more shares instead of her usual cash dividend.Which of the following did Telus distribute to its shareholders?

Accepted Answer

A)  a stock dividend 
B)  a dividend split 
C)  a share distribution 
D)  a share reward 
A)  a stock dividend 
B)  a dividend split 
C)  a share distribution 
D)  a share reward

Question 14

What is the Bank of Canada's most frequently used and most flexible tool?

Accepted Answer

A)  open market operations 
B)  the discount rate 
C)  the reserve requirement 
D)  the prime rate 
A)  open market operations 
B)  the discount rate 
C)  the reserve requirement 
D)  the prime rate

Question 15

What are the two primary types of securities exchange?

Accepted Answer

the broker market (o

Question 16

Dividends can be paid only after all the other obligations of the company have been met.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following are investment certificates that represent either ownership of a corporation or a loan to the corporation?

Accepted Answer

A)  deposits 
B)  capital funds 
C)  contracts 
D)  securities 
A)  deposits 
B)  capital funds 
C)  contracts 
D)  securities

Question 18

Which of the following is an example of a nondepository financial institution?

Accepted Answer

A)  a finance company 
B)  a consulting company 
C)  a savings bank 
D)  a credit union 
A)  a finance company 
B)  a consulting company 
C)  a savings bank 
D)  a credit union

Question 19

What is another term for a chequing account?

Accepted Answer

A)  a treasury account 
B)  a time deposit 
C)  a demand deposit 
D)  a certificate of deposit 
A)  a treasury account 
B)  a time deposit 
C)  a demand deposit 
D)  a certificate of deposit

Question 20

Which of the following best describes credit cards?

Accepted Answer

A)  They are sometimes referred to as funny money. 
B)  They replace money. 
C)  They are used as a substitute for cash but not cheques. 
D)  They defer payment to a later point in time. 
A)  They are sometimes referred to as funny money. 
B)  They replace money. 
C)  They are used as a substitute for cash but not cheques. 
D)  They defer payment to a later point in time.

Securities that are not traded on the organized stock exchanges are traded in which of the following markets?

What are demand deposits?

Which of the following is a financial service that pools its investors' funds to buy a selection of securities and provide professional investment management?

Which of the following are agreements to buy or sell specified quantities of commodities or financial instruments at an agreed price at a future date?

The interest rate specified on the bond that the company must pay the bondholder is known as which of the following?

Futures contracts are best described by which of the following?

The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?

Durability and simplicity are two important characteristics of money.

For money to be an acceptable medium of exchange which of the following are necessary?

What is the most important function of the Bank of Canada?

Holders of preferred shares enjoy which of the following advantages?

Tameika Wilson owns 100 shares of Telus Mobility.Last year Telus Mobility sent her four more shares instead of her usual cash dividend.Which of the following did Telus distribute to its shareholders?

What is the Bank of Canada's most frequently used and most flexible tool?

What are the two primary types of securities exchange?

Dividends can be paid only after all the other obligations of the company have been met.

Which of the following are investment certificates that represent either ownership of a corporation or a loan to the corporation?

Which of the following is an example of a nondepository financial institution?

What is another term for a chequing account?

Which of the following best describes credit cards?

Politics Governments’ Roles

Economics Evolving Systems

Social Society, Corporate Responsibility, and Making Ethical Decisions

Technology Managing Information for Business Success

International The Global Marketplace

Entrepreneurship and Small Business

Analyzing the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing The Customer Focus

Creating Marketing Strategies

Achieving World-Class Operations Management

Accounting for Financial Success

Finance Maximizing the Value

Filters

Exam 17: Understanding Money and the Canadian Financial System

Securities that are not traded on the organized stock exchanges are traded in which of the following markets?

What are demand deposits?

Which of the following is a financial service that pools its investors' funds to buy a selection of securities and provide professional investment management?

Which of the following are agreements to buy or sell specified quantities of commodities or financial instruments at an agreed price at a future date?

The interest rate specified on the bond that the company must pay the bondholder is known as which of the following?

Futures contracts are best described by which of the following?

The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?

Durability and simplicity are two important characteristics of money.

For money to be an acceptable medium of exchange which of the following are necessary?

What is the most important function of the Bank of Canada?

Holders of preferred shares enjoy which of the following advantages?

Tameika Wilson owns 100 shares of Telus Mobility.Last year Telus Mobility sent her four more shares instead of her usual cash dividend.Which of the following did Telus distribute to its shareholders?

What is the Bank of Canada's most frequently used and most flexible tool?

What are the two primary types of securities exchange?

Dividends can be paid only after all the other obligations of the company have been met.

Which of the following are investment certificates that represent either ownership of a corporation or a loan to the corporation?

Which of the following is an example of a nondepository financial institution?

What is another term for a chequing account?

Which of the following best describes credit cards?

Politics Governments’ Roles

Economics Evolving Systems

Social Society, Corporate Responsibility, and Making Ethical Decisions

Technology Managing Information for Business Success

International The Global Marketplace

Entrepreneurship and Small Business

Analyzing the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing The Customer Focus

Creating Marketing Strategies

Achieving World-Class Operations Management

Accounting for Financial Success

Finance Maximizing the Value

Filters