Question 1

When reviewing a company's balance sheets, what ratio best determines whether their borrowing is excessive?

Options :

A : The cash flow from operations / total debt ratio.

B : The debt / equity ratio.

C : The interest coverage ratio.

D : The price / earnings ratio.

Answer: B

Question 2

On which of the following does the Personal Information Protection and Electronic Documents Act (PIPEDA) impose requirements?

Options :

A : consumers

B : departments and agencies of the Government of Canada

C : organizations in the private sector subject to federal regulation

D : departments and agencies of provincial governments

Answer: C

Question 3

Which of the following form part of the disclosure documents relating to mutual funds?

Options :

A : balance sheet, income and cash flow statements of the portfolio management company

B : statement of net assets, annual information form, management reports of fund performance

C : annual proxy voting record, audited financial statements, and proof of registration

D : new account information form, quarterly financial statements, and security certification

Answer: B

Question 4

Which of the followings describes segregated funds?

Options :

A : Segregated funds have high returns, high management fees, and cannot be redeemed until the maturitydate of the contract.

B : Segregated funds flow through capital losses to investors because the investors are the owners of theunderlying fund.

C : Segregated funds offer some protection of the capital invested but there is an added cost for theprotection.

D : Segregated funds are subject to securities regulation because they are distributed by mutual funddealing representatives.

Answer: C

Question 5

Which newspaper article would be likely to result in foreign capital moving out of a country?

Options :

A : Corporate Taxes Reduced

B : New Taxes on Foreign Direct Investment

C : Government Re-elected for a Fourth Consecutive Term

D : International Ranking of Domestic Level of Education Rises Significantly

Answer: B