Exam 16: The Financial System

The ______ is perhaps the most international of all stock markets.

The interest rate at which the Bank of Canada make short term loans to member banks.is called the ________.

Secured bonds are backed by a specific pledge of company assets.

The percentage of cash that banks were required to maintain for immediate withdrawal by customers is referred to as the_______.

Which of the following is a depository financial institution?

The _____ is sometimes referred to as the Big Board,the most famous and one of the oldest stock markets in the world,having been founded in 1792.

All of the following are included in M1 EXCEPT ________.

The price of a bond is affected by its interest rate.

Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?

Securities represent obligations on the part of issuers-businesses and governments-to provide purchasers with expected or stated returns on the funds invested or loaned.

Issuers tend to call bonds when market interest rates are declining.

These securities are backed by a pool of mortgage loans purchased from lenders,such as chartered banks.

A town is considering putting in a toll road that will produce revenue for the town.To provide funding,the town plans to sell revenue bonds.

If the Bank of Canada reduced reserve requirements,________.

Securities are also called_____.

Which of the following financial institutions is organized as a not-for-profit cooperative?

Mortgage-backed corporate bonds consist of pools of _____,loans purchased from lenders such as chartered banks

When a company needs capital to purchase inventory,expand a plant,make major investments,acquire another firm,or pursue other business goals,it may sell a bond or stock issue to the investing public.This is done which market?

Preferred shareholders receive fixed dividends.

The two largest stock markets in the world are the ____ and the ____.