FREE CSC Volume 1 Questions and Answers

Question 1

When secondary market stock trading occurs...

Accepted Answer

an investor is buying shares from another investor

Answer

the issuing company is buying shares from an investor

Answer

an investor is buying shares from the issuing company

Answer

trading in stocks does not take place on the secondary market

Question 2

Nearly all debentures and bonds are offered for sale through

Accepted Answer

dealer markets

Answer

auction markets

Answer

Bonds are sold through auction markets. Debentures are sold through dealer markets

Answer

Bonds are sold through dealer markets.  Debentures are sold through auction markets

Question 3

Eligible deposits at each member institution are insured by CDIC up to ____ per deposit.

Accepted Answer

$100,000

Answer

$1,000,000

Answer

$50,000

Answer

$150,000

Question 4

What happens if the Canadian government's revenue is insufficient to cover its expenses?

Accepted Answer

The Government runs a deficit and it must borrow money

Answer

The Government runs a deficit and it must spend money

Answer

The Government runs a surplus and it must cut spending

Answer

The Government runs a surplus and it must raise taxes

Question 5

"Inflation is stable.... corporate profits are rising and new business start-ups outnumber bankruptcies" ... which stage of the business cycle is described?

Accepted Answer

expansion

Answer

trough

Answer

peak

Answer

contraction

Question 6

The total value of goods and services generated in a nation in a given year is referred to as...

Accepted Answer

Gross Domestic Product

Answer

Gross National Product

Answer

Net National Product

Answer

Net Domestic Product

Question 7

The Bank of Canada performs all of the following primary duties, with the exception of...

Accepted Answer

to prepare balanced federal budgets

Answer

to act as the government's fiscal agent

Answer

to conduct monetary policy

Answer

to issue and remove bank notes

Question 8

Within a range of ____ basis points is where the overnight rate is found.

Accepted Answer

50

Answer

200

Answer

100

Answer

75

Question 9

Recessions are commonly defined as at least...

Accepted Answer

Two declining quarters of real GDP

Answer

the same as the Statistics Canada definition: The depth, duration and diffusing of the decline in business activity

Answer

two declining quarters of nominal GDP

Answer

four declining quarters of real GDP

Question 10

The Federal Reserve board in the US is increasing interest rates. The US government should... in order for Fiscal Policy to be in line with this action.

Accepted Answer

spend less on the military and Medicare

Answer

reduce tariffs on Chinese imports

Answer

cut income taxes

Answer

spend more on higher education