Joan Zemke Expects Interest Rates to Decline Over the Next

question 44

Multiple Choice

Joan Zemke expects interest rates to decline over the next few months.To maximize her earnings she should use a(n)

• A)five-year GIC.
• B)interest-bearing chequing account.
• C)regular savings account.
• D)six-month GIC.
• E)money market fund

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Definitions:

Active Market

A financial market in which securities or commodities are frequently traded, showing significant liquidity and pricing information.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors and approving policies.

Voting Shares

Shares of a company that give the shareholder the right to vote on corporate matters and board elections.