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Multiple Choice Questions
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1

In terms of numbers, the fastest growing financial intermediaries in Canada over the last two decades are:
A)Banks
B)Insurance companies
C)Pension funds
D)Mutual funds
2

Which of the following is an example of a fund saver in the economy?
A)A business obtaining capital from equity issues
B)An employee contributing to a pension plan
C)A household repaying a mortgage loan
D)None of the above
3

In addition to its role of pooling and investing savings, financial institutions provide:
A)Risk transfer, reduction, and monitoring
B)Financial information services
C)Payment services
D)All of the above
4

Benefits under defined-contribution pension plans:
A)Are paid only by employers
B)Are uncertain depending on the accumulated investment values
C)Both (A) and (B)
D)Neither (A) nor (B)
5

In Canada, the largest investors in corporate bonds markets are:
A)Insurance companies
B)Non-residents
C)Banks
D)Mutual funds
E)Pension funds
6

Schedule II banks tend to be:
A)Foreign, small, and niche oriented
B)Big, universal, and domestic
C)More profitable than Schedule I and III banks
D)Widely held
7

RRSP eligible mutual funds can be sold by:
A)Banks only
B)Mutual funds only
C)Life insurance companies only
D)Any of the above
8

Key activities for financial managers are:
A)Investing
B)Raising funds
C)Managing risk
D)All of the above
9

Which of the following cannot be a source of financing for corporations?
A)Derivative market
B)Fixed-income market
C)Stock market
D)Foreign exchange market
10

____ is the combination of operating expenses as a rate of total assets in a mutual fund:
A)Trading expense ratio
B)Maintenance expense ratio
C)Management expense ratio
D)Fixed cost ratio







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