Question 1

Which of the following financial institutions is a not-for-profit institution?

Accepted Answer

A)  savings bank 
B)  credit union 
C)  commercial bank 
D)  savings and loan association 
A)  savings bank 
B)  credit union 
C)  commercial bank 
D)  savings and loan association B

Question 2

Investors were amazed at how quickly the price of eBay shares rose during the first day it was offered for sale to the public. These shares were being sold in which of the following markets?

Accepted Answer

A)  primary market 
B)  Internet 
C)  speculative market 
D)  institutional market 
A)  primary market 
B)  Internet 
C)  speculative market 
D)  institutional market A

Question 3

The Canadian money supply comprises which of the following items?

Accepted Answer

A)  chequing accounts, bonds, and savings accounts 
B)  coins, paper money, and treasury bills 
C)  currency, demand deposits, and time deposits 
D)  bonds, coins deposits, and chequing accounts 
A)  chequing accounts, bonds, and savings accounts 
B)  coins, paper money, and treasury bills 
C)  currency, demand deposits, and time deposits 
D)  bonds, coins deposits, and chequing accounts C

Question 4

Which of the following do not operate on centralized trading floors but instead use sophisticated telecommunications networks throughout the world?

Accepted Answer

A)  futures markets 
B)  dealer markets 
C)  options markets 
D)  primary markets 
A)  futures markets 
B)  dealer markets 
C)  options markets 
D)  primary markets

Question 5

Rocks, leaves, and glass shards would not make good mediums of exchange because they lack which of the following key characteristics?

Accepted Answer

A)  portability 
B)  durability 
C)  scarcity 
D)  divisibility 
A)  portability 
B)  durability 
C)  scarcity 
D)  divisibility

Question 6

Which of the following represent profits from the operation of the corporation that are distributed to the shareholders?

Accepted Answer

A)  dividends 
B)  contribution margins 
C)  net profits 
D)  shared earnings 
A)  dividends 
B)  contribution margins 
C)  net profits 
D)  shared earnings

Question 7

Which of the following are agreements to buy or sell specified quantities of commodities or financial instruments at an agreed price at a future date?

Accepted Answer

A)  futures contracts 
B)  mutual debenture contracts 
C)  options contracts 
D)  on-time contracts 
A)  futures contracts 
B)  mutual debenture contracts 
C)  options contracts 
D)  on-time contracts

Question 8

The three functions of money are medium of exchange, store of value, and measure of wealth.

Accepted Answer

A) True 
 B)False

Question 9

What are markets associated with economic growth, investor optimism, and anticipation of higher share prices?

Accepted Answer

A)  bear markets 
B)  accelerated markets 
C)  open markets 
D)  bull markets 
A)  bear markets 
B)  accelerated markets 
C)  open markets 
D)  bull markets

Question 10

When a corporation issues a bond that can be exchanged for common shares at a later date, which type of bonds has the company issued?

Accepted Answer

A)  convertible bonds 
B)  premium bonds 
C)  debenture bonds 
D)  preferred bonds 
A)  convertible bonds 
B)  premium bonds 
C)  debenture bonds 
D)  preferred bonds

Question 11

The most important function of the Bank of Canada is to carry out fiscal policy.

Accepted Answer

A) True 
 B)False

Question 12

Whose primary activity is underwriting?

Accepted Answer

A)  the Toronto Stock Exchange 
B)  investment bankers 
C)  stockbrokers 
D)  institutional investors 
A)  the Toronto Stock Exchange 
B)  investment bankers 
C)  stockbrokers 
D)  institutional investors

Question 13

What are money market deposit accounts and certificates of deposit officially called?

Accepted Answer

A)  investor deposits 
B)  demand deposits 
C)  time deposits 
D)  income deposits 
A)  investor deposits 
B)  demand deposits 
C)  time deposits 
D)  income deposits

Question 14

A mutual fund serves which of the following functions?

Accepted Answer

A)  It invests in companies that have mutual interests. 
B)  It brings together investors with a mutual interest. 
C)  It invests only in mutual insurance companies. 
D)  It pools investors' funds to buy a selection of securities that meet stated investment goals. 
A)  It invests in companies that have mutual interests. 
B)  It brings together investors with a mutual interest. 
C)  It invests only in mutual insurance companies. 
D)  It pools investors' funds to buy a selection of securities that meet stated investment goals.

Question 15

A security that represents direct ownership interest in a corporation and allows the owner to share in the profits is known as which of the following?

Accepted Answer

A)  mortgage bond 
B)  common shares 
C)  preferred shares 
D)  convertible bond 
A)  mortgage bond 
B)  common shares 
C)  preferred shares 
D)  convertible bond

Question 16

Boulders, windows, and ladders would not make good mediums of exchange because they lack which key characteristic?

Accepted Answer

A)  durability 
B)  portability 
C)  scarcity 
D)  divisibility 
A)  durability 
B)  portability 
C)  scarcity 
D)  divisibility

Question 17

Suppose a six-year-old girl wants to buy a $30 Hello Kitty doll. The money she received for her birthday to buy the doll would be used for which of the following purposes?

Accepted Answer

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

Question 18

Which of the following are profit-oriented depository financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services?

Accepted Answer

A)  credit unions 
B)  thrift institutions 
C)  chartered banks 
D)  finance companies 
A)  credit unions 
B)  thrift institutions 
C)  chartered banks 
D)  finance companies

Question 19

Which of the following would be described as anything that is acceptable as payment for goods and services?

Accepted Answer

A)  shareholders' equity 
B)  fixed asset 
C)  money 
D)  capital 
A)  shareholders' equity 
B)  fixed asset 
C)  money 
D)  capital

Question 20

Which of the following are long-term debt obligations of corporations?

Accepted Answer

A)  assets 
B)  preferred liabilities 
C)  bonds 
D)  indentures 
A)  assets 
B)  preferred liabilities 
C)  bonds 
D)  indentures

Which of the following financial institutions is a not-for-profit institution?

Investors were amazed at how quickly the price of eBay shares rose during the first day it was offered for sale to the public. These shares were being sold in which of the following markets?

The Canadian money supply comprises which of the following items?

Which of the following do not operate on centralized trading floors but instead use sophisticated telecommunications networks throughout the world?

Rocks, leaves, and glass shards would not make good mediums of exchange because they lack which of the following key characteristics?

Which of the following represent profits from the operation of the corporation that are distributed to the shareholders?

Which of the following are agreements to buy or sell specified quantities of commodities or financial instruments at an agreed price at a future date?

The three functions of money are medium of exchange, store of value, and measure of wealth.

What are markets associated with economic growth, investor optimism, and anticipation of higher share prices?

When a corporation issues a bond that can be exchanged for common shares at a later date, which type of bonds has the company issued?

The most important function of the Bank of Canada is to carry out fiscal policy.

Whose primary activity is underwriting?

What are money market deposit accounts and certificates of deposit officially called?

A mutual fund serves which of the following functions?

A security that represents direct ownership interest in a corporation and allows the owner to share in the profits is known as which of the following?

Boulders, windows, and ladders would not make good mediums of exchange because they lack which key characteristic?

Suppose a six-year-old girl wants to buy a $30 Hello Kitty doll. The money she received for her birthday to buy the doll would be used for which of the following purposes?

Which of the following are profit-oriented depository financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services?

Which of the following would be described as anything that is acceptable as payment for goods and services?

Which of the following are long-term debt obligations of corporations?

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

Which of the following financial institutions is a not-for-profit institution?

Investors were amazed at how quickly the price of eBay shares rose during the first day it was offered for sale to the public. These shares were being sold in which of the following markets?

The Canadian money supply comprises which of the following items?

Which of the following do not operate on centralized trading floors but instead use sophisticated telecommunications networks throughout the world?

Rocks, leaves, and glass shards would not make good mediums of exchange because they lack which of the following key characteristics?

Which of the following represent profits from the operation of the corporation that are distributed to the shareholders?

Which of the following are agreements to buy or sell specified quantities of commodities or financial instruments at an agreed price at a future date?

The three functions of money are medium of exchange, store of value, and measure of wealth.

What are markets associated with economic growth, investor optimism, and anticipation of higher share prices?

When a corporation issues a bond that can be exchanged for common shares at a later date, which type of bonds has the company issued?

The most important function of the Bank of Canada is to carry out fiscal policy.

Whose primary activity is underwriting?

What are money market deposit accounts and certificates of deposit officially called?

A mutual fund serves which of the following functions?

A security that represents direct ownership interest in a corporation and allows the owner to share in the profits is known as which of the following?

Boulders, windows, and ladders would not make good mediums of exchange because they lack which key characteristic?

Suppose a six-year-old girl wants to buy a $30 Hello Kitty doll. The money she received for her birthday to buy the doll would be used for which of the following purposes?

Which of the following are profit-oriented depository financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services?

Which of the following would be described as anything that is acceptable as payment for goods and services?

Which of the following are long-term debt obligations of corporations?

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