Question 1

All of the following are functions of the Bank of Canada except to:

Accepted Answer

A) set the bank rate. 
B) insure bank depositors' deposits against bank failure. 
C) control and inspect Canadian currency. 
D) control inflation. 
A) set the bank rate. 
B) insure bank depositors' deposits against bank failure. 
C) control and inspect Canadian currency. 
D) control inflation. B

Question 2

Anything accepted by a society to purchase goods and services or resources is called:

Accepted Answer

A) money. 
B) barter. 
C) capital. 
D) cash. 
A) money. 
B) barter. 
C) capital. 
D) cash. A

Question 3

When Kathy completed her training she expected to be given a stockbroker's position.Instead,she is called an account administrator.This is a better descriptive term than stockbroker because she actually buys and sells all types of securities,not just stock.

Accepted Answer

A) True 
 B)False  False

Question 4

What would happen if governments or nongovernmental organizations were to generate twice as much money as exists now?

Accepted Answer

Prices would go up because mor

Question 5

A document stating that the bank will pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time is a:

Accepted Answer

A) certificate of deposit. 
B) check. 
C) line of credit. 
D) revolving credit agreement. 
A) certificate of deposit. 
B) check. 
C) line of credit. 
D) revolving credit agreement.

Question 6

The regulations in the financial services sector are time consuming and costly to complete because:

Accepted Answer

A) this sector has been very slow to implement technological improvements. 
B) these regulations are designed to protect investors. 
C) there are numerous sets of regulations that exist,and no one is sure which set represents the rules that are currently in force. 
D) the regulators are trying to justify their existence. 
A) this sector has been very slow to implement technological improvements. 
B) these regulations are designed to protect investors. 
C) there are numerous sets of regulations that exist,and no one is sure which set represents the rules that are currently in force. 
D) the regulators are trying to justify their existence.

Question 7

The M2 supply of money consists of all the components of M1 plus savings accounts and term deposits.

Accepted Answer

A) True 
 B)False

Question 8

Ralph bought 100 shares of IBM stock on margin.At the time he made his purchase,which amounted to $10,000,the margin requirement was 60 percent.How much of the purchase amount could Ralph borrow?

Accepted Answer

A) $5,000 
B) $4,000 
C) $6,000 
D) $10,000 
A) $5,000 
B) $4,000 
C) $6,000 
D) $10,000

Question 9

With proper monetary policy you can keep the economy growing but also cause inflation.

Accepted Answer

A) True 
 B)False

Question 10

An investor who buys stock with the expectation that the stock price will continue to climb is a:

Accepted Answer

A) bum. 
B) bee. 
C) bear. 
D) bull. 
A) bum. 
B) bee. 
C) bear. 
D) bull.

Question 11

A firm that trades securities for its clients is called a(n):

Accepted Answer

A) agent. 
B) investment dealer. 
C) financial planner. 
D) financial advisor. 
A) agent. 
B) investment dealer. 
C) financial planner. 
D) financial advisor.

Question 12

A machine that provides almost any service a human teller can provide is called a(n):

Accepted Answer

A) ATM 
B) EFT 
C) ACH 
D) POS 
A) ATM 
B) EFT 
C) ACH 
D) POS

Question 13

Organizations which perform banking functions for consumers in Canada include all of the following except:

Accepted Answer

A) trust companies. 
B) credit unions. 
C) the Bank of Canada. 
D) insurance companies. 
A) trust companies. 
B) credit unions. 
C) the Bank of Canada. 
D) insurance companies.

Question 14

with a bank for a set period of time to earn a higher rate of interest.She does not plan to make an early withdrawal,because early withdrawals are subject to penalties.The best investment in her case is a:

Accepted Answer

A) certificate of deposit. 
B) passbook savings account. 
C) foreign currency deposit. 
D) commercial draft. 
A) certificate of deposit. 
B) passbook savings account. 
C) foreign currency deposit. 
D) commercial draft.

Question 15

The primary function of the Bank of Canada is to maintain a healthy economy by regulating the supply of money.

Accepted Answer

A) True 
 B)False

Question 16

An investor who buys stock with the expectation that the stock price will decline is a:

Accepted Answer

A) bum. 
B) bee. 
C) bear. 
D) bull. 
A) bum. 
B) bee. 
C) bear. 
D) bull.

Question 17

The tool most frequently used by the Bank of Canada to control inflation is through interest rates.

Accepted Answer

A) True 
 B)False

Question 18

Buying a particular stock in units of fewer than 100 shares is buying in:

Accepted Answer

A) market orders. 
B) limit orders. 
C) spot orders. 
D) odd lots. 
A) market orders. 
B) limit orders. 
C) spot orders. 
D) odd lots.

Question 19

Banks charge the prime rate only to their high-risk customers.

Accepted Answer

A) True 
 B)False

Question 20

Banks distribute a good portion of their income to ___________.

Accepted Answer

A) managers 
B) shareholders 
C) CEOs 
D) customers 
A) managers 
B) shareholders 
C) CEOs 
D) customers

All of the following are functions of the Bank of Canada except to:

Anything accepted by a society to purchase goods and services or resources is called:

When Kathy completed her training she expected to be given a stockbroker's position.Instead,she is called an account administrator.This is a better descriptive term than stockbroker because she actually buys and sells all types of securities,not just stock.

What would happen if governments or nongovernmental organizations were to generate twice as much money as exists now?

A document stating that the bank will pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time is a:

The regulations in the financial services sector are time consuming and costly to complete because:

The M2 supply of money consists of all the components of M1 plus savings accounts and term deposits.

Ralph bought 100 shares of IBM stock on margin.At the time he made his purchase,which amounted to $10,000,the margin requirement was 60 percent.How much of the purchase amount could Ralph borrow?

With proper monetary policy you can keep the economy growing but also cause inflation.

An investor who buys stock with the expectation that the stock price will continue to climb is a:

A firm that trades securities for its clients is called a(n):

A machine that provides almost any service a human teller can provide is called a(n):

Organizations which perform banking functions for consumers in Canada include all of the following except:

with a bank for a set period of time to earn a higher rate of interest.She does not plan to make an early withdrawal,because early withdrawals are subject to penalties.The best investment in her case is a:

The primary function of the Bank of Canada is to maintain a healthy economy by regulating the supply of money.

An investor who buys stock with the expectation that the stock price will decline is a:

The tool most frequently used by the Bank of Canada to control inflation is through interest rates.

Buying a particular stock in units of fewer than 100 shares is buying in:

Banks charge the prime rate only to their high-risk customers.

Banks distribute a good portion of their income to ___________.

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management

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Exam 18: The Financial Services Industry in Canada

All of the following are functions of the Bank of Canada except to:

Anything accepted by a society to purchase goods and services or resources is called:

When Kathy completed her training she expected to be given a stockbroker's position.Instead,she is called an account administrator.This is a better descriptive term than stockbroker because she actually buys and sells all types of securities,not just stock.

What would happen if governments or nongovernmental organizations were to generate twice as much money as exists now?

A document stating that the bank will pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time is a:

The regulations in the financial services sector are time consuming and costly to complete because:

The M2 supply of money consists of all the components of M1 plus savings accounts and term deposits.

Ralph bought 100 shares of IBM stock on margin.At the time he made his purchase,which amounted to $10,000,the margin requirement was 60 percent.How much of the purchase amount could Ralph borrow?

With proper monetary policy you can keep the economy growing but also cause inflation.

An investor who buys stock with the expectation that the stock price will continue to climb is a:

A firm that trades securities for its clients is called a(n):

A machine that provides almost any service a human teller can provide is called a(n):

Organizations which perform banking functions for consumers in Canada include all of the following except:

with a bank for a set period of time to earn a higher rate of interest.She does not plan to make an early withdrawal,because early withdrawals are subject to penalties.The best investment in her case is a:

The primary function of the Bank of Canada is to maintain a healthy economy by regulating the supply of money.

An investor who buys stock with the expectation that the stock price will decline is a:

The tool most frequently used by the Bank of Canada to control inflation is through interest rates.

Buying a particular stock in units of fewer than 100 shares is buying in:

Banks charge the prime rate only to their high-risk customers.

Banks distribute a good portion of their income to ___________.

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management

Filters