Question 1

Which is the only province where trades in unlisted securities need to be reported?

Accepted Answer

A)  British Columbia 
B)  Quebec 
C)  Alberta 
D)  Ontario 
A)  British Columbia 
B)  Quebec 
C)  Alberta 
D)  Ontario D

Question 2

The three intermediation channels that transfer money from lenders to borrowers are

Accepted Answer

A)  direct, indirect, and financial intermediation. 
B)  direct, indirect, and monetary intermediation. 
C)  direct, financial, and monetary intermediation. 
D)  indirect, financial, and monetary intermediation. 
A)  direct, indirect, and financial intermediation. 
B)  direct, indirect, and monetary intermediation. 
C)  direct, financial, and monetary intermediation. 
D)  indirect, financial, and monetary intermediation. A

Question 3

Which of the following is NOT one of the main functions performed by mutual funds?

Accepted Answer

A)  pooling sums of money to make investments 
B)  paying out premiums to their clients 
C)  providing professional management expertise 
D)  acting as a "pass-through" for individuals to invest in the equity and debt markets 
A)  pooling sums of money to make investments 
B)  paying out premiums to their clients 
C)  providing professional management expertise 
D)  acting as a "pass-through" for individuals to invest in the equity and debt markets B

Question 4

What was NOT a reason for the credit crunch of 2008-09?

Accepted Answer

A)  mistrust between financial intermediaries 
B)  illiquidity of debt markets 
C)  the arrest of Bernard Madoff 
D)  bankruptcy of one of the leading financial institutions 
A)  mistrust between financial intermediaries 
B)  illiquidity of debt markets 
C)  the arrest of Bernard Madoff 
D)  bankruptcy of one of the leading financial institutions

Question 5

Financial markets are usually classified by the type and maturity of the financial assets traded.The two main classifications are as follows:

Accepted Answer

A)  bond market and money market. 
B)  money market and capital market. 
C)  bond market and foreign-exchange market. 
D)  commodity market and capital market. 
A)  bond market and money market. 
B)  money market and capital market. 
C)  bond market and foreign-exchange market. 
D)  commodity market and capital market.

Question 6

Finance is the study of how and under what terms

Accepted Answer

A)  savings are allocated between lenders and borrowers. 
B)  investments are allocated between investors and brokers. 
C)  institutions with excess money make share purchase decisions. 
D)  households allocate money between spending and saving. 
A)  savings are allocated between lenders and borrowers. 
B)  investments are allocated between investors and brokers. 
C)  institutions with excess money make share purchase decisions. 
D)  households allocate money between spending and saving.

Question 7

The consolidation of U.S.and global stock markets has

Accepted Answer

A)  been increasing recently, as shown by the merger of the NYSE and Euronext. 
B)  been decreasing recently, as shown by the decrease in multi-listed stocks. 
C)  led to lower risk in investments because markets have become less interdependent. 
D)  led to increased reliance on human interactions in securities trading. 
A)  been increasing recently, as shown by the merger of the NYSE and Euronext. 
B)  been decreasing recently, as shown by the decrease in multi-listed stocks. 
C)  led to lower risk in investments because markets have become less interdependent. 
D)  led to increased reliance on human interactions in securities trading.

Question 8

If Canadian households,in aggregate,own real assets with a market value of $3.194 trillion,and also own net financial assets with a market value of $2.344 trillion,the total net assets of Canadian households have a market value of

Accepted Answer

A)  $3.194 trillion 
B)  $5.538 trillion 
C)  $-0.850 trillion 
D)  $0.850 trillion 
A)  $3.194 trillion 
B)  $5.538 trillion 
C)  $-0.850 trillion 
D)  $0.850 trillion

Question 9

Which is the world's largest and most famous stock market?

Accepted Answer

A)  New York Stock Exchange (NYS
E)  
B)  Toronto Stock Exchange (TSX) 
C)  Tokyo Stock Exchange (TS
E)  
D)  London Stock Exchange (LS
E)  
A)  New York Stock Exchange (NYS
E)  
B)  Toronto Stock Exchange (TSX) 
C)  Tokyo Stock Exchange (TS
E)  
D)  London Stock Exchange (LS
E)

Question 10

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 11

Explain the gravity of the situation of pension holders in Quebec after the loss of 25 percent of La Caisse de Depot's portfolio (pension fund manager of Quebec)in 2008.

Accepted Answer

La Caisse de Depot is the manager of pen

Question 12

Which of the following items is NOT a real asset?

Accepted Answer

A)  land 
B)  television 
C)  bond 
D)  gold mine 
A)  land 
B)  television 
C)  bond 
D)  gold mine

Question 13

Which of the following is NOT an example of a capital market security?

Accepted Answer

A)  bond 
B)  debenture 
C)  common equity 
D)  T-bill 
A)  bond 
B)  debenture 
C)  common equity 
D)  T-bill

Question 14

Which of the following sectors is NOT a user of savings in the economy?

Accepted Answer

A)  business sector 
B)  household sector 
C)  government sector 
D)  banking sector 
A)  business sector 
B)  household sector 
C)  government sector 
D)  banking sector

Question 15

The exchange that acts as the Canadian national derivatives market and conducts all options and futures trading is called the

Accepted Answer

A)  Bourse de Montreal. 
B)  Winnipeg Commodity Exchange. 
C)  TSX Venture. 
D)  Alpha Exchange. 
A)  Bourse de Montreal. 
B)  Winnipeg Commodity Exchange. 
C)  TSX Venture. 
D)  Alpha Exchange.

Question 16

Which of the following is NOT a component of debt securities?

Accepted Answer

A)  maturity 
B)  repayment 
C)  dividends 
D)  interest payments 
A)  maturity 
B)  repayment 
C)  dividends 
D)  interest payments

Question 17

Why can't the Canadian government issue equity?

Accepted Answer

A)  because assets belong to all Canadians 
B)  it is not listed in the financial markets 
C)  it has too much debt 
D)  because expenditures exceed revenues 
A)  because assets belong to all Canadians 
B)  it is not listed in the financial markets 
C)  it has too much debt 
D)  because expenditures exceed revenues

Question 18

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 19

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 20

Given the following hypothetical information regarding the real and financial assets in Canada for 2015 (numbers in $ billions):
 
What is the value of the total net assets in Canada for 2015?

Accepted Answer

A)  $5,842 billion 
B)  $6,086 billion 
C)  $6,124 billion 
D)  $6,105 billion 
A)  $5,842 billion 
B)  $6,086 billion 
C)  $6,124 billion 
D)  $6,105 billion

Exam 1: An Introduction to Finance

Which is the only province where trades in unlisted securities need to be reported?

The three intermediation channels that transfer money from lenders to borrowers are

Which of the following is NOT one of the main functions performed by mutual funds?

What was NOT a reason for the credit crunch of 2008-09?

Financial markets are usually classified by the type and maturity of the financial assets traded.The two main classifications are as follows:

Finance is the study of how and under what terms

The consolidation of U.S.and global stock markets has

If Canadian households,in aggregate,own real assets with a market value of $3.194 trillion,and also own net financial assets with a market value of $2.344 trillion,the total net assets of Canadian households have a market value of

Which is the world's largest and most famous stock market?

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

Explain the gravity of the situation of pension holders in Quebec after the loss of 25 percent of La Caisse de Depot's portfolio (pension fund manager of Quebec)in 2008.

Which of the following items is NOT a real asset?

Which of the following is NOT an example of a capital market security?

Which of the following sectors is NOT a user of savings in the economy?

The exchange that acts as the Canadian national derivatives market and conducts all options and futures trading is called the

Which of the following is NOT a component of debt securities?

Why can't the Canadian government issue equity?

All common shares are comprised of which two components?

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

Given the following hypothetical information regarding the real and financial assets in Canada for 2015 (numbers in $ billions): What is the value of the total net assets in Canada for 2015?

Business Corporatefinance

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