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.