Deck 2: The Canadian Financial Environment

Question 1

The Canadian financial system is perhaps one of the most efficient and effective exchange processes in the world.

Answer 1

True

Question 2

Financial intermediary corporations include pension funds.

Answer 2

True

Question 3

The four pillars of Canada's financial system include chartered banks, trust companies, credit unions, and investment entities.

Answer 3

False

Question 4

The first Canadian chartered banks was the Royal Bank of Canada.

Question 5

The Office of the Superintendent of Financial Institutions performs many tasks, one of which is monitoring banks conducting business in Canada.

Question 6

Trust companies do not have the authority to accept deposits and operate in a fashion very similar to banks.

Question 7

The leaseback transaction has been around since the 1920s.

Question 8

Insurance firms and pension funds are cash-rich and carry very significant assets.

Question 9

Bridge financing is a type of long-term financing.

Question 10

Canadian financial intermediaries include:

A) Chartered banks
B) Insurance Firms
C) Pension Funds
D) Trust companies
E) All of the above

Question 11

The Canadian financial system is:

A) no different from the US financial system
B) very safe and secure
C) managed by the Bank of Canada
D) not significant to the Canadian hospitality industry

Question 12

The Canadian Deposit Insurance Corporation insures personal bank accounts up to:

A) $ 60,000
B) $ 80,000
C) $100,000
D) $120,000

Question 13

Banks that are classified as one of Canada's chartered banks are considered to be:

A) Schedule I Banks
B) Schedule II Banks
C) Schedule III Banks
D) Schedule IV Banks

Question 14

The Bank of Canada is responsible for:

A) Monetary policy
B) Monitoring and controlling bank notes
C) Managing Canada's payment system
D) All of the above

Question 15

The Office of the Superintendent of Financial Institutions (OSFI) is a:

A) Private entity
B) Federal agency
C) Consortium of banks and trust companies
D) All of the above

Question 16

Trust companies can:

A) Accept deposits
B) Provide loans
C) Sell investments
D) All of the above

Question 17

Insurance firms can:

A) Provide funds (financing) to help pay for hotel construction
B) Participate in leaseback transactions
C) Provide borrowing facilities to clients
D) All of the above

Question 18

Pension funds:

A) Can provide capital to pay for hotel investments
B) Participate in leaseback transactions
C) Provide borrowing facilities to clients
D) All of the above

Question 19

Both insurance firms and pension funds:

A) are cash-rich
B) carry very significant assets
C) actively search out viable pragmatic investments
D) all of the above