Multiple choice

: 1. Treasury Bills are: a) regular interest bonds b) discounted securities sold by corporations c) simple interest bonds d) discounted securities sold by the government of Canada e) compound interest bonds

2. based on the dominion Bond rating service a bond with a rating of "A" has what type of credit? a) speculative b) superior c) adequate d) highest e) good

3. junk bonds are a) Bonds that may be in default b) Bonds selling at an extremely deep discount c) unsecured bonds d) Bonds selling at an extremely high premium e) Bonds with no maturity date

4. Bonds issued by the Canadian federal government a) cannot be sold prior to maturity b) Pay lower interest than corporate bonds c) always trade at a discount d) always trade at a premium e) are insured by CDIC insurance

5. generally, Canadian government securities issued by the treasury department a) receive the DBRS' AAA rating b) are not graded because they are risk-free c) receive the treasury department "risk-free" rating d) receive the standard & Poor's AA rating e) are given the same rating by all the bound rating companies