the economics of money, banking, and financial markets

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4. 
   

   In the 1998-1999 fiscal year, the flat rate insurance premium was ____.
   A) 1/6 of 1 percent
   B) 1/4 of 1 percent
   C) 1/3 of 1 percent
   D) 1/2 of 1 percent
   Answer: A
   Diff: 2 Type: MC Page Ref: 227
   Skill: Recall
   Objective List: 10.3 Examine CDIC Developments

   
   


5. 
   

   The Differential Premiums By-law came into effect for the premium year beginning
   ____.
   A) May 1, 1999
   B) January 1, 1999
   C) May 31, 1999
   D) December 31, 1999
   Answer: A
   Diff: 2 Type: MC Page Ref: 227
   Skill: Recall
   Objective List: 10.3 Examine CDIC Developments

   
   


6. 
   

   CDIC premium revenue is ____.
   A) the same for all deposit taking institutions
   B) vary from 15 cents to 20 cents per dollar
   C) based on the risk profile of the member institution
   D) capped at 15 cents for "worst" institutions
   Answer: C
   Diff: 2 Type: MC Page Ref: 227
   Skill: Recall
   Objective List: 10.3 Examine CDIC Developments

   
   


7. 
   

   The Differential Premiums By-law classifies CDIC institutions according to their risk profile.
   ____ dominate the criteria.
   A) Capital adequacy measures
   B) Quantitative aspects
   C) Qualitative aspects
   D) CAMELS rating
   Answer: A
   Diff: 2 Type: MC Page Ref: 228
   Skill: Recall
   Objective List: 10.3 Examine CDIC Developments