FACULTY OF LIBERAL ARTS & PROFESSIONAL STUDIES
SCHOOL OF ADMINISTRATIVE STUDIES
AP/ADMS 1010 3.0 A
BUSINESS IN THE CANADIAN CONTEXT
FINAL EXAMINIATION – WINTER 2010
April 10, 2010
7:00 – 10:00 p.m.
WEIGHTING OF GRADES SECTIONS M,N,O,P, SECTIONS T
MID-TERM ASSIGNMENT 40% 35%
FINAL EXAMINATION 60% 55%
TIME ALLOWED: THREE HOURS
1. This is an OPEN BOOK FINAL EXAMINATION. Electric aids, including
cell telephones, pagers, electric dictionaries, etc., are not permitted.
2. There are two Parts to this final examination. Answer the two
questions in Part 1 and the two questions in Part 2 for a total of four
questions in as much detail as possible. All questions are equally
3. Extensive use and visible reference to course theoretical content are
expected and necessary for a satisfactory grade.
4. Number and answer each question separately.
5. When directly quoting from a source, cite the author(s) and page
6. Write only in pen. PART A – PROPOSED REGULATIONS TO MORTGAGES
ANSWER QUESTIONS 1 AND 2 – BONUS QUESTION 3
On February 16, 2010, amid a growing clamber from the banking sector for some
sort of government action to prevent a bubble and dissuade Canadians from
taking on too much debt, Canada’s Finance Minister Flaherty unveiled three
changes effective April 19, 2010 intended to help prepare borrowers for interest
rate increases widely anticipated later this year. In particular, it was announced
that effectively April 19, 2010, government backed mortgages will face three new
1. All mortgage applicants for a five year fixed rate mortgage will have to
qualify when calculating gross debt service and total debt service ratios.
2. The maximum refinancing level for a high ratio mortgage in Canada will be
lowered from 95% to 90%.
3. The minimum down payment for a non-owner occupied