Question: CHAPTER 16-3 12 MC QUESTIONS Q: In Canada, regulation of the securities industry is a _____ responsibility. Multiple Choice provincial bank of Canada investment Dealers'
CHAPTER 16-3
12 MC QUESTIONS
Q: In Canada, regulation of the securities industry is a _____ responsibility.
Multiple Choice
provincial
bank of Canada
investment Dealers' Association
national Association of Securities Dealers
Q: Markets comprised of securities with maturities greater than one year are generally referred to as:
Multiple Choice
money markets
capital markets
long-term markets
bull markets
Q: Markets comprised of securities with maturities of one year or less are generally referred to as:
Multiple Choice
stock markets
bond markets
capital markets
money markets
Q: The primary benefit provided investors by security markets is:
Multiple Choice
riskless trading.
guaranteed returns.
liquidity.
costless trading.
Q: Which regulatory body directly oversees the investment dealers and the trading activity?
Multiple Choice
Chartered Accountants of Canada
Canadian Securities Institute
Investment Industry Regulatory Organization of Canada (IIROC)
Office of the Superintendent of Financial Institutions
Q: During the last decade, internally generated funds:
Multiple Choice
averaged about 20% of the total funds issued by corporations.
declined significantly from previous decades.
averaged about 60% of the total funds issued by corporations.
increased dramatically over the 10 year period.
Q: The trading activity of the market is a measure of:
Multiple Choice
the stock of wealth.
liquidity.
time of the day.
the size of the exchange.
Q: Which of the following statements is true with respect to New York Stock Exchange?
Multiple Choice
It is the largest of all exchanges but not the most important.
It is the largest in the world by value traded.
It can delist a security at any time.
NYSE listed stocks will not be traded on regional stock exchanges.
Q: Which one of the following is the largest financial intermediary in terms of total assets?
Multiple Choice
Insurance
Mutual funds
Trusteed pension funds
Banks
Q: In terms of new issue or outstanding issue, security markets can be categorized into the:
Multiple Choice
secondary market and the tertiary market.
capital market and the money market.
bond market and the stock market.
primary market and the secondary market.
Q: The Income Tax Act for RRSP purposely requires that securities be traded through:
Multiple Choice
organized exchanges.
insurance companies.
banks.
over-the-counter markets.
Q: The markets are generally considered to be:
Multiple Choice
weak form efficient.
abnormally efficient.
semi-strong form efficient.
inefficient.
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