Question 1

What are the two broad groups involved in financial intermediation?

Accepted Answer

depository

Question 2

Which of the following markets are associated with pessimism, economic slowdown, and government restraint?

Accepted Answer

A)  bull 
B)  depression 
C)  bear 
D)  recession 
A)  bull 
B)  depression 
C)  bear 
D)  recession

Question 3

Unlike futures contracts, the price paid for options is the maximum amount that can be lost.

Accepted Answer

A) True 
 B)False

Question 4

List three types of nondepository financial institutions.

Accepted Answer

insurance companies,

Question 5

The Canadian Deposit Insurance Corporation insures deposits in commercial banks. The CDIC was created as one of which of the following institutions?

Accepted Answer

A)  insurance company 
B)  crown corporation 
C)  finance company 
D)  national bank 
A)  insurance company 
B)  crown corporation 
C)  finance company 
D)  national bank

Question 6

An exchange-traded fund is a basket of marketable securities in a category, such as an industry sector, an investment objective, or a geographical area, or that track an index and trade like one.

Accepted Answer

A) True 
 B)False

Question 7

Investment banker is another term for stockbroker.

Accepted Answer

A) True 
 B)False

Question 8

What is the tool most frequently used by the Bank of Canada to control inflation and interest rates, increase employment, and influence economic activity?

Accepted Answer

open marke

Question 9

What can you expect to happen to your securities investment when a bull market exists?

Accepted Answer

The prices

Question 10

The Bank of Canada has the power to do which of the following?

Accepted Answer

A)  spend money 
B)  raise taxes 
C)  invest money 
D)  create money 
A)  spend money 
B)  raise taxes 
C)  invest money 
D)  create money

Question 11

What is a system where goods and services are exchanged for other goods and services as a form of payment?

Accepted Answer

A)  trading system 
B)  barter system 
C)  cashless system 
D)  transaction system 
A)  trading system 
B)  barter system 
C)  cashless system 
D)  transaction system

Question 12

What is the class of equity securities that provides the most potential for growth and appreciation?

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 13

What are the two types of equity shares?

Accepted Answer

common sha

Question 14

Why would cherries, ears of corn, and cookies not make good mediums of exchange?

Accepted Answer

A)  divisibility 
B)  durability 
C)  profitability 
D)  exchangeability 
A)  divisibility 
B)  durability 
C)  profitability 
D)  exchangeability

Question 15

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, and 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, and sortable.

Question 16

Kate Tankersly pays her bills each month by writing cheques. Which type of account is Tankersly using?

Accepted Answer

A)  certificate of deposit 
B)  time deposit 
C)  demand deposit 
D)  federal deposit 
A)  certificate of deposit 
B)  time deposit 
C)  demand deposit 
D)  federal deposit

Question 17

Which of the following is NOT one of the key characteristics of money?

Accepted Answer

A)  profitability 
B)  durability 
C)  divisibility 
D)  scarcity 
A)  profitability 
B)  durability 
C)  divisibility 
D)  scarcity

Question 18

Futures contracts pay both interest and dividends.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements best describes a bull market?

Accepted Answer

A)  Bull markets are characterized by a period of optimism. 
B)  Bull markets are characterized by government restraint. 
C)  Bull markets never last more than 12 months. 
D)  Bull markets never last longer than bear markets. 
A)  Bull markets are characterized by a period of optimism. 
B)  Bull markets are characterized by government restraint. 
C)  Bull markets never last more than 12 months. 
D)  Bull markets never last longer than bear markets.

Question 20

Which of the following is one of the advantages of common share ownership?

Accepted Answer

A)  deductability 
B)  transferability 
C)  convertibility 
D)  liquidity 
A)  deductability 
B)  transferability 
C)  convertibility 
D)  liquidity

What are the two broad groups involved in financial intermediation?

Which of the following markets are associated with pessimism, economic slowdown, and government restraint?

Unlike futures contracts, the price paid for options is the maximum amount that can be lost.

List three types of nondepository financial institutions.

The Canadian Deposit Insurance Corporation insures deposits in commercial banks. The CDIC was created as one of which of the following institutions?

An exchange-traded fund is a basket of marketable securities in a category, such as an industry sector, an investment objective, or a geographical area, or that track an index and trade like one.

Investment banker is another term for stockbroker.

What is the tool most frequently used by the Bank of Canada to control inflation and interest rates, increase employment, and influence economic activity?

What can you expect to happen to your securities investment when a bull market exists?

The Bank of Canada has the power to do which of the following?

What is a system where goods and services are exchanged for other goods and services as a form of payment?

What is the class of equity securities that provides the most potential for growth and appreciation?

What are the two types of equity shares?

Why would cherries, ears of corn, and cookies not make good mediums of exchange?

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

Kate Tankersly pays her bills each month by writing cheques. Which type of account is Tankersly using?

Which of the following is NOT one of the key characteristics of money?

Futures contracts pay both interest and dividends.

Which of the following statements best describes a bull market?

Which of the following is one of the advantages of common share ownership?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding 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

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Finance

Filters

Exam 17: Understanding Money and the Canadian Financial System

What are the two broad groups involved in financial intermediation?

Which of the following markets are associated with pessimism, economic slowdown, and government restraint?

Unlike futures contracts, the price paid for options is the maximum amount that can be lost.

List three types of nondepository financial institutions.

The Canadian Deposit Insurance Corporation insures deposits in commercial banks. The CDIC was created as one of which of the following institutions?

An exchange-traded fund is a basket of marketable securities in a category, such as an industry sector, an investment objective, or a geographical area, or that track an index and trade like one.

Investment banker is another term for stockbroker.

What is the tool most frequently used by the Bank of Canada to control inflation and interest rates, increase employment, and influence economic activity?

What can you expect to happen to your securities investment when a bull market exists?

The Bank of Canada has the power to do which of the following?

What is a system where goods and services are exchanged for other goods and services as a form of payment?

What is the class of equity securities that provides the most potential for growth and appreciation?

What are the two types of equity shares?

Why would cherries, ears of corn, and cookies not make good mediums of exchange?

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

Kate Tankersly pays her bills each month by writing cheques. Which type of account is Tankersly using?

Which of the following is NOT one of the key characteristics of money?

Futures contracts pay both interest and dividends.

Which of the following statements best describes a bull market?

Which of the following is one of the advantages of common share ownership?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding 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

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Finance

Filters