Question 1

The Toronto Stock Exchange (TSX) is the largest exchange market in Canada.

Accepted Answer

The Toronto Stock Exchange (TSX) is indeed the largest stock exchange in Canada, both by market capitalization and by the volume of trade.

Question 2

The Toronto Stock Exchange (TSX) is a virtual exchange market.

Accepted Answer

True&#10;

Question 3

The Canadian Venture Exchange (CDNX) is a product of the former Vancouver and Alberta stock exchange markets collapsing and consolidating.

Accepted Answer

The Canadian Venture Exchange (CDNX) was created in 1999 as a result of the merger of the Vancouver and Alberta stock exchanges, aimed at providing a platform for trading in emerging companies.

Question 4

The Winnipeg and Montreal exchanges have merged with the Canadian Venture Exchange (CDNX).

Accepted Answer

The Winnipeg and Montreal exchanges did merge with the Canadian Venture Exchange (CDNX), which later became part of the TSX Venture Exchange after further consolidation and reorganization of Canada's stock exchanges.

Question 5

The TSX acquired the CDNX in 2001 and renamed it the TSX Venture Exchange in 2002.

Accepted Answer

The Toronto Stock Exchange (TSX) acquired the Canadian Venture Exchange (CDNX) in 2001 and subsequently renamed it the TSX Venture Exchange in 2002, to serve as a public venture capital marketplace for emerging companies.

Question 6

A government agency involved in helping Canadians purchase homes is the&#10;A) CMHC&#10;B) CIBC&#10;C) FDIC&#10;D) CRA

Accepted Answer

The Canada Mortgage and Housing Corporation (CMHC) is the government agency responsible for helping Canadians purchase homes, primarily through mortgage loan insurance and housing research and advice.

Question 7

You manage a McDonald's in Germany. At the beginning of the year, the exchange rate was $1CDN = 1Euro. At the end of the year, the exchange rate is $1CDN = .90Euro. You report profits of 450,000 Euros. How much have your profits increased in terms of dollars from the exchange rate change during the year?

A) 10%
B) 90%
C) 11.11%
D) unkown from information given

Accepted Answer

At the beginning of the year, 450,000 Euros would have been equivalent to 450,000 CDN dollars (1:1 exchange rate). At the end of the year, with the exchange rate at $1CDN = .90Euro, 450,000 Euros would convert to 500,000 CDN dollars (450,000 / 0.9). This represents an increase of 50,000 CDN dollars on the original 450,000 CDN dollars, which is an 11.11% increase (50,000 / 450,000 = 0.1111 or 11.11%).

Question 8

The Canadian Dollar is viewed by most economists as being a&#10;A) Petro Dollar&#10;B) Euro Dollar&#10;C) North American Dollar&#10;D) none of the above.

Accepted Answer

The Canadian Dollar is often considered a "Petro Dollar" because the value of the Canadian dollar is strongly influenced by the price of oil, as the Canadian economy is significantly dependent on oil exports.

Question 9

The DJIA can be used by investors as a ________________ as to how well stocks on the NYSE are performing in general.&#10;A) forward looking indicator&#10;B) current barometer&#10;C) time lagging indicator&#10;D) none of the above.

Accepted Answer

The DJIA (Dow Jones Industrial Average) is considered a current barometer of how well stocks on the NYSE (New York Stock Exchange) are performing, reflecting the market's performance at any given moment.

Question 10

Similar to the _________ the S&P/TSX composite index can be used by investors for the Toronto Stock Exchange.&#10;A) DJIA&#10;B) DAX&#10;C) Nikkei&#10;D) all of the above.

Accepted Answer

The S&P/TSX composite index, similar to the DJIA (Dow Jones Industrial Average) in the United States, the DAX in Germany, and the Nikkei in Japan, serves as a benchmark for the overall performance of the stock market in its respective country, in this case, Canada.

Deck 3: Financial Markets and Financial Instruments