Yes it certainly is real Canadian money.
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Yes, the money contestants win is very much real. Contestants are paid their winnings by check 90-120 days after the show airs.
you need to buy them in the cash shop. To buy it in the cash shop you need to get Nexon cash by using real money.
If you mean real money, then no. You have to buy them in game, with Simoleons (Sim cash.)
No, a basic account is free. There is cash (optional) that you could buy with real money, but other than that, it's a free program.
You can't... you CAN pay for a membership with Station Cash, but that has to be paid for with real world money... you can't get a free membership. Sorry.