You Have an Investment Account with a Brokerage Firm That

question 4

Multiple Choice

You have an investment account with a brokerage firm that is CIPF insured. The account consists of $40,000 in cash, and $170,000 in securities. Which one of the following is true regarding this account?

• A) Only $100,000 of the account is insured against fraud
• B) The $40,000 of cash and $60,000 of the securities are insured against losses from any source
• C) The entire account is guaranteed safe by the Canadian government agency issuing the CIPF insurance
• D) The $40,000 in cash plus the first $100,000 in securities is guaranteed by the private insurance fund backing the CIPF insurance
• E) The entire account is protected by a private fund but only for losses resulting from fraud or other failure of the brokerage firm

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Definitions:

Muscle Action

The process by which muscles contract and relax, leading to movement of body parts.

Charged Ions

Atoms or molecules that have gained or lost one or more electrons, resulting in a net electrical charge.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell, which is the basic building block of the nervous system.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another in the brain.