Question 1

The amount borrowed by the issuer of a bond is also called par value.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty?

Accepted Answer

A)  marketable securities 
B)  demand deposits 
C)  commercial deposits 
D)  time deposits 
A)  marketable securities 
B)  demand deposits 
C)  commercial deposits 
D)  time deposits

Question 3

Which of the following buys and sells securities (stocks and bonds) for its clients and gives them related advice?

Accepted Answer

A)  finance company 
B)  consulting company 
C)  brokerage company 
D)  investment company 
A)  finance company 
B)  consulting company 
C)  brokerage company 
D)  investment company

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Megan Voorhees recently inherited $200,000. She has invested the inherited money in real estate and government securities. Voorhees is using her money for which of the following purposes?

Accepted Answer

A)  store of value 
B)  medium of exchange 
C)  commodity of exchange 
D)  measure of wealth 
A)  store of value 
B)  medium of exchange 
C)  commodity of exchange 
D)  measure of wealth

Question 6

What is the commonly assigned principal for all corporate bonds?

Accepted Answer

The answer of What is the commonly assigned principal for...

Question 7

The four pillars of the Canadian financial system are banks, trust companies, insurance companies, and credit unions.

Accepted Answer

A) True 
 B)False

Question 8

What 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 shares?

Accepted Answer

A)  exchange-traded fund 
B)  mutual fund 
C)  market tracking portfolio 
D)  diversified stock portfolio 
A)  exchange-traded fund 
B)  mutual fund 
C)  market tracking portfolio 
D)  diversified stock portfolio

Question 9

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

Accepted Answer

the carryi

Question 10

Credit cards are simply a form of which of the following?

Accepted Answer

A)  depositing 
B)  borrowing 
C)  investing 
D)  leveraging 
A)  depositing 
B)  borrowing 
C)  investing 
D)  leveraging

Question 11

A brokerage company is an example of a depository financial institution.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a financial institution that conducts the same activities as a bank but can also administer estates, pension plans, and agency contracts?

Accepted Answer

A)  chartered bank 
B)  trust company 
C)  brokerage company 
D)  credit union 
A)  chartered bank 
B)  trust company 
C)  brokerage company 
D)  credit union

Question 13

The Canadian Deposit Insurance Corporation insures only deposits at commercial banks.

Accepted Answer

A) True 
 B)False

Question 14

What are the two primary types of securities exchange?

Accepted Answer

the broker market (o

Question 15

Which of the following type of bonds are high-risk, high-return bonds that were often used to finance mergers and acquisitions in the 1980s?

Accepted Answer

A)  takeover bonds 
B)  junk bonds 
C)  venture capital bonds 
D)  discount bonds 
A)  takeover bonds 
B)  junk bonds 
C)  venture capital bonds 
D)  discount bonds

Question 16

Which of the following is an activity performed by the Bank of Canada as it carries out its monetary policy?

Accepted Answer

A)  insuring credit card balances 
B)  providing tax refunds 
C)  distributing currency 
D)  loaning money to consumers 
A)  insuring credit card balances 
B)  providing tax refunds 
C)  distributing currency 
D)  loaning money to consumers

Question 17

Which of the following best describes a mutual fund?

Accepted Answer

A)  It does not have a stated investment goal. 
B)  It is professionally managed. 
C)  It offers lower returns than individually managed accounts. 
D)  It is not a good way to hold a diversified stock portfolio. 
A)  It does not have a stated investment goal. 
B)  It is professionally managed. 
C)  It offers lower returns than individually managed accounts. 
D)  It is not a good way to hold a diversified stock portfolio.

Question 18

Which of the following is NOT a function of money?

Accepted Answer

A)  measure of wealth 
B)  store of value 
C)  standard of value 
D)  medium of exchange 
A)  measure of wealth 
B)  store of value 
C)  standard of value 
D)  medium of exchange

Question 19

Which of the following is one of the key characteristics required in order for money to be an acceptable medium of exchange?

Accepted Answer

A)  flexibility 
B)  profitability 
C)  divisibility 
D)  distributability 
A)  flexibility 
B)  profitability 
C)  divisibility 
D)  distributability

Question 20

The most important function of the Bank of Canada is implementing which of the following policies?

Accepted Answer

A)  monetary 
B)  fiscal 
C)  tax 
D)  spending 
A)  monetary 
B)  fiscal 
C)  tax 
D)  spending

The amount borrowed by the issuer of a bond is also called par value.

Which of the following are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty?

Which of the following buys and sells securities (stocks and bonds) for its clients and gives them related advice?

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

Megan Voorhees recently inherited $200,000. She has invested the inherited money in real estate and government securities. Voorhees is using her money for which of the following purposes?

What is the commonly assigned principal for all corporate bonds?

The four pillars of the Canadian financial system are banks, trust companies, insurance companies, and credit unions.

What 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 shares?

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

Credit cards are simply a form of which of the following?

A brokerage company is an example of a depository financial institution.

Which of the following is a financial institution that conducts the same activities as a bank but can also administer estates, pension plans, and agency contracts?

The Canadian Deposit Insurance Corporation insures only deposits at commercial banks.

What are the two primary types of securities exchange?

Which of the following type of bonds are high-risk, high-return bonds that were often used to finance mergers and acquisitions in the 1980s?

Which of the following is an activity performed by the Bank of Canada as it carries out its monetary policy?

Which of the following best describes a mutual fund?

Which of the following is NOT a function of money?

Which of the following is one of the key characteristics required in order for money to be an acceptable medium of exchange?

The most important function of the Bank of Canada is implementing which of the following policies?

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

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Exam 17: Understanding Money and the Canadian Financial System

The amount borrowed by the issuer of a bond is also called par value.

Which of the following are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty?

Which of the following buys and sells securities (stocks and bonds) for its clients and gives them related advice?

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

Megan Voorhees recently inherited $200,000. She has invested the inherited money in real estate and government securities. Voorhees is using her money for which of the following purposes?

What is the commonly assigned principal for all corporate bonds?

The four pillars of the Canadian financial system are banks, trust companies, insurance companies, and credit unions.

What 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 shares?

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

Credit cards are simply a form of which of the following?

A brokerage company is an example of a depository financial institution.

Which of the following is a financial institution that conducts the same activities as a bank but can also administer estates, pension plans, and agency contracts?

The Canadian Deposit Insurance Corporation insures only deposits at commercial banks.

What are the two primary types of securities exchange?

Which of the following type of bonds are high-risk, high-return bonds that were often used to finance mergers and acquisitions in the 1980s?

Which of the following is an activity performed by the Bank of Canada as it carries out its monetary policy?

Which of the following best describes a mutual fund?

Which of the following is NOT a function of money?

Which of the following is one of the key characteristics required in order for money to be an acceptable medium of exchange?

The most important function of the Bank of Canada is implementing which of the following policies?

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