Question

1)Low interest rates tend to entice investors into the stock market where they can achieve better returns.

Select one:

True

False

2)

Fiscal policy, the means by which the Canadian government imposes taxes on individuals and corporations and spends its money, has an impact on spending and thus an impact on the stock of some companies.

Select one:

True

False

3)

Stocks would be most favourably affected by

Select one:

a. a increase in interest rates and stable inflation.

b. an increase in interest rates and a decline in inflation.

c. a decline in interest rates and stable inflation.

d. an increase in interest rates and an increase in inflation.

4)

If you wish to have a direct voice in the running of a company, you should purchase

Select one:

a. notes.

b. directorships.

c. preferred stock.

d. common stock.

5)

The stocks of well-known companies are referred to as "preferred stock."

Select one:

True

False

6)

A high times interest earned ratio means that the firm should be more capable of covering its debt payments.

Select one:

True

False

7)

Rising stock prices are related to

Select one:

a. corporate objectives.

b. negative earnings.

c. steadily increasing earnings.

d. poor economic conditions.

Answer 1

1 yes ,Low interest rates tend to entice investors into the stock market where they can achieve better returns.

2 yes ,Fiscal policy, the means by which the Canadian government imposes taxes on individuals and corporations and spends its money, has an impact on spending and thus an impact on the stock of some companies.

3 Stocks would be most favourably affected by decline in interest rates and stable inflation.

4 to have a direct voice in the running of a company, you should purchase common stock

5 false The stocks of well-known companies are not referred to as "preferred stock.

6 yes A high times interest earned ratio means that the firm should be more capable of covering its debtpayments.

7 Rising stock prices are related to steadily increasing earnings.

Rising securities exchanges, or positively trending markets, can make a feeling of certainty about the bearing of the economy. As costs keep on rising, more financial specialists come into the market, which expands on the force. Falling securities exchanges, or bear markets, ordinarily have the contrary impact. Individuals feel critical about the economy.