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Quizzes
True/False

1 .       PDDS sounds like the newest disease, but it is actually a neat way of remembering the desirable characteristics of money. 

 
 


2 .       Money has two functions, exchange and storage. 

 
 


3 .       Money market funds can make a profit or loss and are part of the money supply. 

 
 


4 .       Credit cards cost you money in two ways, not one. 

 
 


5 .       Four distinct pillars hold up the Canadian financial system and no company can be in more than one of those four areas. 

 
 


6 .       The big U.S. banks are in Canada now and will do to the Canadian banks what Wal-Mart did to Eatons and K-Mart. 

 
 


7 .       Banks are not much affected by electronics, except for ATMs. 

 
 


8 .       There is no particular link between bank deposits and bank loans. 

 
 


9 .       Banks expand the money supply by printing more money. 

 
 


10 .       The Bank of Canada is the biggest and oldest of the big six, private, chartered banks. 

 
 


11 .       The Bank of Canada is led by Canada’s Minister of Finance. 

 
 


12 .       By selling and buying securities the Bank of Canada contracts or expands the money supply. 

 
 


13 .       Life insurance companies collect your premiums that you pay on your mortgage. 

 
 


14 .       Factors are a good idea because they buy your receivables for 100% of their value, and then charge a fee to the company who owes the receivables. 

 
 


15 .       As a new company you could get money from a variety of sources in Canada, but not from international markets. 

 
 


16 .       International trade works in part because there is an international payments process. 

 
 


17 .       Once a stock is sold to investors by the issuing company, it cannot be sold again. 

 
 


18 .       Stocks have three values, not one. 

 
 


19 .       When you invest in a stock, you may be affected by rumours and investor relations information. 

 
 


20 .       Stock exchanges are found all over the world, including Canada where there are three. 

 
 


21 .       A bond is a written contract promising to pay, by a certain date, principle, and interest, some at higher interest rates than others because of risk. 

 
 


22 .       Bonds can be converted, called, or have a sinking fund provision. 

 
 


23 .       If you get into mutual funds after graduation, you do not have to pay commissions if you do not want to. 

 
 


24 .       If you want to get into bonds investing you will probably be using the TSE, not the OTC. 

 
 


25 .       Investing on margin is buying stocks on credit. 

 
 


26 .       What is happening in the market? Look at the indexes. 

 
 


27 .       You can place a stop, go, or square order. 

 
 






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