Exam 17: Understanding Money and the Canadian Financial System

What is the term for any object or objects that a group of people use to buy and sell goods and services?

A trust company is a financial institution that conducts the same activities as a bank but can also administer estates, pension plans, and agency contracts.

Which of the following are contracts that entitle holders to buy or sell specified quantities of common shares or other financial instruments at a set price during a specified time?

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?

Two tools used by the Bank of Canada in managing the money supply are open market operations and the overnight rate.

The purchase or sale of Canadian government securities by the Bank of Canada to stimulate or slow down the economy is known as which of the following?

To stimulate the economy, the Bank of Canada can do which of the following?

A savings account is also known as which of the following?

Darren Hicks owns 10 shares in Carolina Power, a utility company. He has voting rights and shares in the profits. What type of shares does Hicks own?

A secured bond is the type of bond issued by a financially secure corporation.

Durability, scarcity, portability, and divisibility are the four key characteristics of money.

The Canadian Deposit Insurance Corporation insures deposits in commercial banks. What is the maximum amount at a single institution that CDIC will insure someone for?

Depository financial institutions include commercial banks, trust companies, and credit unions.

Which of the following is NOT one of the four pillars of the Canadian financial system?

Which of the following statements best describes credit unions?

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

Preferred shareholders have the voting rights in a corporation.

Common shares are the most widespread form of ownership with the right to vote on important corporate decisions.

ATMs let customers of banks make deposits and withdrawals while in a shopping centre or supermarket 24 hours a day. What do the letters ATM stand for?

Which of the following type of bond is NOT backed by assets?