All of the Following Statements Concerning the Bank of Canada

question 68

Multiple Choice

All of the following statements concerning the Bank of Canada are correct EXCEPT ______.

• A) the Bank of Canada is the nation's central bank
• B) the Bank of Canada acts as the banker's bank
• C) virtually all large commercial banks are Bank of Canada members
• D) credit unions and savings banks must belong to the Bank of Canada

---

Definitions:

Cumulative Voting

A voting system that allows shareholders to allocate all of their votes to one candidate or distribute them among multiple candidates during an election.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividends that are paid out before those of common shares.

Debt

Money that is owed or due to another individual or entity, often involving agreed repayment terms and interest.

Supernormal Dividend

Dividends that are higher than the level that can be sustained by the long-term growth rate of the company.