IFC Questions Bank

A corporation’s charter specifies the maximum number of authorized shares it may issue. The Registrar (provincial securities administrator) ensures compliance so that a public corporation does not issue more shares than authorized.

Trustees oversee debt obligations.

Portfolio managers manage investments.

Distributors sell securities but do not regulate share issuance.

Thus, the responsible party is the Registrar.

Contractionary monetary policy is used when the economy is overheating or facing inflationary pressure.

The Bank of Canada increases interest rates, which leads to reduced borrowing and lending.

This action decreases the money supply in circulation and reduces the availability of credit to consumers and businesses.

Therefore, the correct effect of contractionary monetary policy is that it reduces both money supply and credit in the economy.