Question 1

________ institutions are financial intermediaries that acquire funds at periodic intervals on a contractual basis.

Accepted Answer

A)  Investment 
B)  Contractual savings 
C)  Thrift 
D)  Depository 
A)  Investment 
B)  Contractual savings 
C)  Thrift 
D)  Depository

Question 2

Which of the following instruments are traded in a money market?

Accepted Answer

A)  Bank commercial loans 
B)  Commercial paper 
C)  Provincial government bonds 
D)  Residential mortgages 
A)  Bank commercial loans 
B)  Commercial paper 
C)  Provincial government bonds 
D)  Residential mortgages

Question 3

Economies of scale enable financial institutions to ________.

Accepted Answer

A)  reduce transactions costs 
B)  avoid the asymmetric information problem 
C)  avoid adverse selection problems 
D)  reduce moral hazard 
A)  reduce transactions costs 
B)  avoid the asymmetric information problem 
C)  avoid adverse selection problems 
D)  reduce moral hazard

Question 4

The primary assets of a pension fund are ________.

Accepted Answer

A)  money market instruments 
B)  corporate bonds and stock 
C)  consumer and business loans 
D)  mortgages 
A)  money market instruments 
B)  corporate bonds and stock 
C)  consumer and business loans 
D)  mortgages

Question 5

The process of asset transformation refers to the conversion of ________.

Accepted Answer

A)  safer assets into risky assets 
B)  safer assets into safer liabilities 
C)  risky assets into safer assets 
D)  risky assets into risky liabilities 
A)  safer assets into risky assets 
B)  safer assets into safer liabilities 
C)  risky assets into safer assets 
D)  risky assets into risky liabilities

Question 6

Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from ________.

Accepted Answer

A)  government agencies 
B)  equities markets 
C)  financial intermediaries 
D)  bond markets 
A)  government agencies 
B)  equities markets 
C)  financial intermediaries 
D)  bond markets

Question 7

Distinguish between a foreign bond and a Eurobond.

Accepted Answer

A foreign bond is sold in a fo

Question 8

How do regulators help to ensure the soundness of financial intermediaries?

Accepted Answer

Regulators restrict who can se

Question 9

The purpose of the disclosure requirements is to ________.

Accepted Answer

A)  increase the information available to investors 
B)  prevent bank panics 
C)  improve monetary control 
D)  protect investors against financial losses 
A)  increase the information available to investors 
B)  prevent bank panics 
C)  improve monetary control 
D)  protect investors against financial losses

Question 10

An important function of secondary markets is to ________.

Accepted Answer

A)  make it easier to sell financial instruments to raise funds 
B)  raise funds for corporations through the sale of securities 
C)  make it easier for governments to raise taxes 
D)  create a market for newly constructed houses 
A)  make it easier to sell financial instruments to raise funds 
B)  raise funds for corporations through the sale of securities 
C)  make it easier for governments to raise taxes 
D)  create a market for newly constructed houses

________ institutions are financial intermediaries that acquire funds at periodic intervals on a contractual basis.

Which of the following instruments are traded in a money market?

Economies of scale enable financial institutions to ________.

The primary assets of a pension fund are ________.

The process of asset transformation refers to the conversion of ________.

Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from ________.

Distinguish between a foreign bond and a Eurobond.

How do regulators help to ensure the soundness of financial intermediaries?

The purpose of the disclosure requirements is to ________.

An important function of secondary markets is to ________.

Why Study Money, banking, and Financial Markets

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Nonbank Finance

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Exam 2: An Overview of the Financial System

________ institutions are financial intermediaries that acquire funds at periodic intervals on a contractual basis.

Which of the following instruments are traded in a money market?

Economies of scale enable financial institutions to ________.

The primary assets of a pension fund are ________.

The process of asset transformation refers to the conversion of ________.

Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from ________.

Distinguish between a foreign bond and a Eurobond.

How do regulators help to ensure the soundness of financial intermediaries?

The purpose of the disclosure requirements is to ________.

An important function of secondary markets is to ________.

Why Study Money, banking, and Financial Markets

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Nonbank Finance

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters