Chapter 2 Test Questions and Complete
Answers 2026/2027 Updated.
1. mobile
2. sensitive to environment
3. scarce - Answer 3 characteristics of capital
Fiscal Polocy - Answer ___ refers to levels of tax and government spending
a) source of capital
b) retail, institutional, and foreign investors - Answer The only a)___ is savings; b)___
+___+___ are a significant source of investment capital
individuals, businesses, governments - Answer The users of capital are 1) 2) 3)
t_bills
marketable_bonds
CSBs <- CanadaSavingsBonds
CPBs <- CanadaPremiumBonds - Answer When revenue fails to meet expenditures, gov makes
4 main instruments:
1.
2.
3.
4.
a) Securities - Answer What are the Financial Instruments?
a) ________ are formal legal documents that set out hte rights and obligations of buyers and
sellers
DEIDI -debt x equity x investment_funds x derivatives x other - Answer What are the 5 broad
classes of financial instruments?
1.
2.
3.
4.