Question 1

Internet technology can allow investors to buy and sell shares without using a stockbroker.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Which of the following statements best describes how banks are delivering financial services with Internet banking?

Accepted Answer

A)  Internet banking has led to a reduction of the number of financial services that banks offer. 
B)  Online presentment and payment is a significant cost savings. 
C)  The appearance of Internet banking has reduced concerns about maintaining consumer privacy. 
D)  The number of Internet banks is growing more rapidly than brick-and-mortar banks.

Question 4

Which bonds are backed by specific assets of the company, which are pledged as collateral?

Accepted Answer

A)  debenture bonds 
B)  holding bonds 
C)  conventional bonds 
D)  secured bonds

Question 5

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

Question 6

Which system is the first electronic-based stock market and the largest over-the-counter market?

Accepted Answer

A)  AMEX 
B)  NASA 
C)  NASDAQ 
D)  AMC

Question 7

Which of the following is a class of ownership interest that receives dividends first but does not have the right to vote?

Accepted Answer

A)  pre-emptive shares 
B)  convertible shares 
C)  common shares 
D)  preferred shares

Question 8

As a security, options are best described by which of the following?

Accepted Answer

A)  They have a very long maturity. 
B)  They can be a risky purchase for investors. 
C)  They do not legally obligate the holder to buy or sell. 
D)  They are not similar to futures contracts.

Question 9

What is another term for a chequing account?

Accepted Answer

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

Question 10

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

Question 11

What is another name for a stockbroker?

Accepted Answer

A)  investment banker 
B)  underwriter 
C)  fiscal manager 
D)  account executive

Question 12

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses.

Accepted Answer

A) True 
 B)False

Question 13

Markets in which securities prices are falling are called are called bull markets.

Accepted Answer

A) True 
 B)False

Question 14

Mutual funds are prohibited from investing in bonds and government securities.

Accepted Answer

A) True 
 B)False

Question 15

What is wrong with the following statement: "Credit cards replace money"?

Accepted Answer

The answer of What is wrong with the following statement:...

Question 16

Two tools used by the Bank of Canada in managing the money supply are open market operations and which of the following?

Accepted Answer

A)  printing money 
B)  discount rate 
C)  reserve requirement 
D)  overnight rate

Question 17

Money is anything that is acceptable as payment for goods and services.

Accepted Answer

A) True 
 B)False

Question 18

The Canadian Deposit Insurance Corporation is governed by the Canada Deposit Insurance Corporation Act.

Accepted Answer

A) True 
 B)False

Question 19

The primary market is where new securities are sold to the public, usually with the help of investment bankers.

Accepted Answer

A) True 
 B)False

Question 20

The secondary market is like the used-car market; it deals in "old" or already issued securities.

Accepted Answer

A) True 
 B)False

Exam 17: Understanding Money and the Canadian Financial System

Internet technology can allow investors to buy and sell shares without using a stockbroker.

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

Which of the following statements best describes how banks are delivering financial services with Internet banking?

Which bonds are backed by specific assets of the company, which are pledged as collateral?

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

Which system is the first electronic-based stock market and the largest over-the-counter market?

Which of the following is a class of ownership interest that receives dividends first but does not have the right to vote?

As a security, options are best described by which of the following?

What is another term for a chequing account?

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 another name for a stockbroker?

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses.

Markets in which securities prices are falling are called are called bull markets.

Mutual funds are prohibited from investing in bonds and government securities.

What is wrong with the following statement: "Credit cards replace money"?

Two tools used by the Bank of Canada in managing the money supply are open market operations and which of the following?

Money is anything that is acceptable as payment for goods and services.

The Canadian Deposit Insurance Corporation is governed by the Canada Deposit Insurance Corporation Act.

The primary market is where new securities are sold to the public, usually with the help of investment bankers.

The secondary market is like the used-car market; it deals in "old" or already issued securities.