Choose the Statement That Is Incorrect About Trust and Loan

question 42

Multiple Choice

Choose the statement that is incorrect about trust and loan companies.

• A)Trust and loan companies hold more than 70 percent of the total assets of the Canadian financial services sector.
• B)The largest trust and loan companies are owned by banks.
• C)Trust and loan companies accept deposits and make personal loans and mortgage loans.
• D)Trust and loan companies administer estates.
• E)Trust and loan companies administer trusts and pension plans.

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Definitions:

Spot Index

A real-time index that reflects the current prices of the securities included in the index.

Arbitrage Profit

The gain obtained from the simultaneous purchase and sale of the same or equivalent assets or commodities in different markets or in derivative forms.

Selling Short

The investment strategy of selling securities one does not currently own, with the expectation of buying them back later at a lower price.

Mark-To-Market

An accounting method where the value of assets and liabilities is adjusted to their current market values rather than being recorded at their original cost.