Question 1

Though they are classified as equity, why are preferred shares also similar to debt?

Accepted Answer

A) Both carry the same interest rate. 
B) Dividends on preferred shares must be paid out before any common share dividends. 
C) The voting structures for preferred shares and debt are equivalent. 
D) Preferred shares have similar maturity structures to debt. 
A) Both carry the same interest rate. 
B) Dividends on preferred shares must be paid out before any common share dividends. 
C) The voting structures for preferred shares and debt are equivalent. 
D) Preferred shares have similar maturity structures to debt.

Question 2

Which of the following was NOT one of the major objectives in the restructuring of the Canadian stock exchanges in 1999 and 2000?

Accepted Answer

A) to create a Canadian market for NASDAQ-listed companies 
B) to combine all futures and options trading on one exchange 
C) to make the TSX the official exchange for the trading of Canadian senior stocks 
D) to create a single national exchange for trading in junior company stocks 
A) to create a Canadian market for NASDAQ-listed companies 
B) to combine all futures and options trading on one exchange 
C) to make the TSX the official exchange for the trading of Canadian senior stocks 
D) to create a single national exchange for trading in junior company stocks

Question 3

How do financial intermediaries help those with "too much money today" and those with "not enough money today"?

Accepted Answer

Financial markets provide these surplus-

Question 4

Although Canadian banks are involved in almost all areas of the financial system, which of the following is their core activity?

Accepted Answer

A) stock market investment activity 
B) retirement planning 
C) wealth management 
D) taking deposits and lending funds 
A) stock market investment activity 
B) retirement planning 
C) wealth management 
D) taking deposits and lending funds

Question 5

Since March 2000 the Montreal Exchange (ME)has functioned as Canada's national market for

Accepted Answer

A) hedge funds. 
B) publicly traded stocks. 
C) derivatives. 
D) T-bills. 
A) hedge funds. 
B) publicly traded stocks. 
C) derivatives. 
D) T-bills.

Question 6

Which of the following is an existing stock exchange in Canada?

Accepted Answer

A) Toronto Stock Exchange (TSX) 
B) Montreal Exchange (M
E)  
C) Vancouver Stock Exchange (VS
E)  
D) Winnipeg Stock Exchange (WS
E)  
A) Toronto Stock Exchange (TSX) 
B) Montreal Exchange (M
E)  
C) Vancouver Stock Exchange (VS
E)  
D) Winnipeg Stock Exchange (WS
E)

Question 7

All common shares are comprised of which two components?

Accepted Answer

A) ownership and voting rights 
B) ownership and dividend rights 
C) voting and dividend rights 
D) dividend and yield rights 
A) ownership and voting rights 
B) ownership and dividend rights 
C) voting and dividend rights 
D) dividend and yield rights

Question 8

In the following list, which item is a financial asset?

Accepted Answer

A) land 
B) bond 
C) building 
D) inventory 
A) land 
B) bond 
C) building 
D) inventory

Question 9

Explain why primary markets are the key to the wealth creation process.

Accepted Answer

In a primary market, new securities are

Question 10

Of the following list, who are the dominant players in the money market?
I.individuals
II.corporations
III.governments

Accepted Answer

A) I and II 
B) I and III 
C) II and III 
D) I, II, and III 
A) I and II 
B) I and III 
C) II and III 
D) I, II, and III

Question 11

A market where transactions are made directly between large institutions and wealthy individuals that bypass brokers and dealers is an example of

Accepted Answer

A) the primary market. 
B) the secondary market. 
C) the third market. 
D) the fourth market. 
A) the primary market. 
B) the secondary market. 
C) the third market. 
D) the fourth market.

Question 12

The two sectors that are normally regarded as the lowest risk in the financial market are

Accepted Answer

A) T-bills and loans extended to "PIIGS" countries. 
B) demand deposits and loans to countries that have taken austerity measures. 
C) household mortgages and government debt. 
D) government debt and foreign company borrowings. 
A) T-bills and loans extended to "PIIGS" countries. 
B) demand deposits and loans to countries that have taken austerity measures. 
C) household mortgages and government debt. 
D) government debt and foreign company borrowings.

Question 13

Which one of the following is NOT a function of brokers?

Accepted Answer

A) Manage money for clients. 
B) Make the market work. 
C) Charge a fee for their services. 
D) Assist with the transaction process. 
A) Manage money for clients. 
B) Make the market work. 
C) Charge a fee for their services. 
D) Assist with the transaction process.

Though they are classified as equity, why are preferred shares also similar to debt?

Which of the following was NOT one of the major objectives in the restructuring of the Canadian stock exchanges in 1999 and 2000?

How do financial intermediaries help those with "too much money today" and those with "not enough money today"?

Although Canadian banks are involved in almost all areas of the financial system, which of the following is their core activity?

Since March 2000 the Montreal Exchange (ME)has functioned as Canada's national market for

Which of the following is an existing stock exchange in Canada?

All common shares are comprised of which two components?

In the following list, which item is a financial asset?

Explain why primary markets are the key to the wealth creation process.

Of the following list, who are the dominant players in the money market? I.individuals II.corporations III.governments

A market where transactions are made directly between large institutions and wealthy individuals that bypass brokers and dealers is an example of

The two sectors that are normally regarded as the lowest risk in the financial market are

Which one of the following is NOT a function of brokers?

Business Corporate Finance

Financial Statements

Financial Statement Analysis and Forecasting

Time Value of Money

Bond Valuation and Interest Rates

Equity Valuation

Risk, Return, and Portfolio Theory

The Capital Asset Pricing Model Capm

Market Efficiency

Forwards, Futures, and Swaps

Options

Capital Budgeting, Risk Considerations, and Other Special Issues

Cash Flow Estimation and Capital Budgeting Decisions

Mergers and Acquisitions

Leasing

Investment Banking and Securities Law

Debt Instruments

Equity and Hybrid Instruments

Cost of Capital

Capital Structure Decisions

Dividend Policy

Working Capital Management: General Issues

Working Capital Management: Current Assets and Current Liabilities

Filters

Exam 1: An Introduction to Finance

Though they are classified as equity, why are preferred shares also similar to debt?

Which of the following was NOT one of the major objectives in the restructuring of the Canadian stock exchanges in 1999 and 2000?

How do financial intermediaries help those with "too much money today" and those with "not enough money today"?

Although Canadian banks are involved in almost all areas of the financial system, which of the following is their core activity?

Since March 2000 the Montreal Exchange (ME)has functioned as Canada's national market for

Which of the following is an existing stock exchange in Canada?

All common shares are comprised of which two components?

In the following list, which item is a financial asset?

Explain why primary markets are the key to the wealth creation process.

Of the following list, who are the dominant players in the money market? I.individuals II.corporations III.governments

A market where transactions are made directly between large institutions and wealthy individuals that bypass brokers and dealers is an example of

The two sectors that are normally regarded as the lowest risk in the financial market are

Which one of the following is NOT a function of brokers?

Business Corporate Finance

Financial Statements

Financial Statement Analysis and Forecasting

Time Value of Money

Bond Valuation and Interest Rates

Equity Valuation

Risk, Return, and Portfolio Theory

The Capital Asset Pricing Model Capm

Market Efficiency

Forwards, Futures, and Swaps

Options

Capital Budgeting, Risk Considerations, and Other Special Issues

Cash Flow Estimation and Capital Budgeting Decisions

Mergers and Acquisitions

Leasing

Investment Banking and Securities Law

Debt Instruments

Equity and Hybrid Instruments

Cost of Capital

Capital Structure Decisions

Dividend Policy

Working Capital Management: General Issues

Working Capital Management: Current Assets and Current Liabilities

Filters