Question 1

Which of the following agencies regulates federally chartered commercial banks?

Accepted Answer

A)  The Federal Reserve 
B)  Federal Comptroller 
C)  The Bank of Canada 
D)  TSX 
A)  The Federal Reserve 
B)  Federal Comptroller 
C)  The Bank of Canada 
D)  TSX C

Question 2

The _______ sets most policies concerning monetary policy and interest rates.

Accepted Answer

A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers 
A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers H

Question 3

____ are short-term debt securities issued by governments,financial institutions,and corporations.

Accepted Answer

A)  Money market instruments 
B)  Bonds 
C)  Checks 
D)  Stock 
A)  Money market instruments 
B)  Bonds 
C)  Checks 
D)  Stock A

Question 4

Most investors are members of the NYSE,or other stock markets,and therefore they do not need to use the services of a brokerage firm to buy or sell stocks.

Accepted Answer

A) True 
 B)False

Question 5

An owner of which form of stock would receive dividend payments first?

Accepted Answer

A)  Preferred stock 
B)  Common stock 
C)  Convertible securities 
D)  Standard stock 
A)  Preferred stock 
B)  Common stock 
C)  Convertible securities 
D)  Standard stock

Question 6

Commercial paper is securities sold by corporations,such as General Electric,that mature from 1 to 270 months from the date of issue

Accepted Answer

A) True 
 B)False

Question 7

Owners of common shares expect returns on their investment in the form of cash dividend payments,expected price appreciation,or both.

Accepted Answer

A) True 
 B)False

Question 8

When the Bank of Canada buys government securities,it adds to the supply of money and credit,which causes a reduction in interest rates.

Accepted Answer

A) True 
 B)False

Question 9

Other things being equal,the higher the interest rate,the _____ the price of a bond.

Accepted Answer

A)  same 
B)  cannot be determined 
C)  higher 
D)  lower 
A)  same 
B)  cannot be determined 
C)  higher 
D)  lower

Question 10

Which of the following interest rates does the Bank of Canada actually set?

Accepted Answer

A)  Discount rate 
B)  Federal funds rate 
C)  Government bond rate 
D)  Commercial paper rate 
A)  Discount rate 
B)  Federal funds rate 
C)  Government bond rate 
D)  Commercial paper rate

Question 11

The Canadian government sells what type of bonds?

Accepted Answer

A)  Government bonds 
B)  Corporate bonds 
C)  Treasury bills bonds 
D)  Municipal bonds 
A)  Government bonds 
B)  Corporate bonds 
C)  Treasury bills bonds 
D)  Municipal bonds

Question 12

Explain the main features of common shares.

Accepted Answer

Common shares is the basic form of corpo

Question 13

Businesses are net savers,while households are net users of funds.

Accepted Answer

A) True 
 B)False

Question 14

Treasury bills have a minimum denomination of $1,000.

Accepted Answer

A) True 
 B)False

Question 15

Zachary buys a Canada savings bond.This is an example of funds being transferred from a saver to a user ________.

Accepted Answer

A)  through the financial markets 
B)  through a financial institution 
C)  directly 
D)  through the government 
A)  through the financial markets 
B)  through a financial institution 
C)  directly 
D)  through the government

Question 16

M2 includes ________ M1.

Accepted Answer

A)  all of 
B)  none of 
C)  some of 
A)  all of 
B)  none of 
C)  some of

Question 17

Explain the difference between primary and secondary markets.

Accepted Answer

In the primary market,firms and governme

Question 18

Convertible bonds pay lower interest rates than those lacking conversion features.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following policy tools does the Bank of Canada use most frequently?

Accepted Answer

A)  Changes to the discount rate 
B)  Changes to the reserve requirement 
C)  Changes to margin requirements 
D)  Open market operations 
A)  Changes to the discount rate 
B)  Changes to the reserve requirement 
C)  Changes to margin requirements 
D)  Open market operations

Question 20

The use of non-public information about a company to make an investment profit is known as __________.

Accepted Answer

A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers 
A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers

Which of the following agencies regulates federally chartered commercial banks?

The _______ sets most policies concerning monetary policy and interest rates.

____ are short-term debt securities issued by governments,financial institutions,and corporations.

Most investors are members of the NYSE,or other stock markets,and therefore they do not need to use the services of a brokerage firm to buy or sell stocks.

An owner of which form of stock would receive dividend payments first?

Commercial paper is securities sold by corporations,such as General Electric,that mature from 1 to 270 months from the date of issue

Owners of common shares expect returns on their investment in the form of cash dividend payments,expected price appreciation,or both.

When the Bank of Canada buys government securities,it adds to the supply of money and credit,which causes a reduction in interest rates.

Other things being equal,the higher the interest rate,the _____ the price of a bond.

Which of the following interest rates does the Bank of Canada actually set?

The Canadian government sells what type of bonds?

Explain the main features of common shares.

Businesses are net savers,while households are net users of funds.

Treasury bills have a minimum denomination of $1,000.

Zachary buys a Canada savings bond.This is an example of funds being transferred from a saver to a user ________.

M2 includes ________ M1.

Explain the difference between primary and secondary markets.

Convertible bonds pay lower interest rates than those lacking conversion features.

Which of the following policy tools does the Bank of Canada use most frequently?

The use of non-public information about a company to make an investment profit is known as __________.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

Financial Management

Filters

Exam 16: The Financial System

Which of the following agencies regulates federally chartered commercial banks?

The _______ sets most policies concerning monetary policy and interest rates.

____ are short-term debt securities issued by governments,financial institutions,and corporations.

Most investors are members of the NYSE,or other stock markets,and therefore they do not need to use the services of a brokerage firm to buy or sell stocks.

An owner of which form of stock would receive dividend payments first?

Commercial paper is securities sold by corporations,such as General Electric,that mature from 1 to 270 months from the date of issue

Owners of common shares expect returns on their investment in the form of cash dividend payments,expected price appreciation,or both.

When the Bank of Canada buys government securities,it adds to the supply of money and credit,which causes a reduction in interest rates.

Other things being equal,the higher the interest rate,the _____ the price of a bond.

Which of the following interest rates does the Bank of Canada actually set?

The Canadian government sells what type of bonds?

Explain the main features of common shares.

Businesses are net savers,while households are net users of funds.

Treasury bills have a minimum denomination of $1,000.

Zachary buys a Canada savings bond.This is an example of funds being transferred from a saver to a user ________.

M2 includes ________ M1.

Explain the difference between primary and secondary markets.

Convertible bonds pay lower interest rates than those lacking conversion features.

Which of the following policy tools does the Bank of Canada use most frequently?

The use of non-public information about a company to make an investment profit is known as __________.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

Financial Management

Filters