Question 1

_____are creditors of a corporation or government body.

Accepted Answer

A)  Commercial paper holders 
B)  CD holders 
C)  Treasury bills holders 
D)  Bondholders 
A)  Commercial paper holders 
B)  CD holders 
C)  Treasury bills holders 
D)  Bondholders

Question 2

Bondholders are creditors,therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy,reorganization,or liquidation.

Accepted Answer

A) True 
 B)False

Question 3

Explain what a mutual fund is and give an example of one.

Accepted Answer

Mutual funds are financial intermediarie

Question 4

Nina's financial institution has an office next to where she works.Everyone who uses the financial institution's services either works for Nina's employer or is related to someone who does.Nina's financial institution is a ________.

Accepted Answer

A)  credit union 
B)  savings bank 
C)  commercial bank 
D)  state chartered bank 
A)  credit union 
B)  savings bank 
C)  commercial bank 
D)  state chartered bank

Question 5

When the Bank of Canada sells government securities,banks have ________ money to lend and economic growth ________.

Accepted Answer

A)  less;will slow 
B)  less;will accelerate 
C)  more;will slow 
D)  more;will accelerate 
A)  less;will slow 
B)  less;will accelerate 
C)  more;will slow 
D)  more;will accelerate

Question 6

All of the following are types of securities except_____.

Accepted Answer

A)  money market instruments 
B)  cash 
C)  bonds 
D)  Stock 
A)  money market instruments 
B)  cash 
C)  bonds 
D)  Stock

Question 7

The process used by an insurance company to determine whom to insure and how much to charge is called ________.

Accepted Answer

A)  a premium 
B)  an insuring agreement 
C)  underwriting 
D)  indemnity 
A)  a premium 
B)  an insuring agreement 
C)  underwriting 
D)  indemnity

Question 8

When evaluating loan applications,banks consider the borrower's ability and willingness to repay the loan.

Accepted Answer

A) True 
 B)False

Question 9

Under the Bank Act the federal government is responsible for regulating the banking sector.

Accepted Answer

A) True 
 B)False

Question 10

What is the Bank of Canada's most important function? How does this function affect the nation's rate of inflation and employment?

Accepted Answer

The Bank of Canada's most important func

Question 11

According to a recent survey _________________ were the highest users of Internet banking.

Accepted Answer

A)  Canadians 
B)  Americans 
C)  Germans 
D)  the Swiss 
A)  Canadians 
B)  Americans 
C)  Germans 
D)  the Swiss

Question 12

_____ is a form of short-term financing sold by corporations,such as Salton Brands,that mature from 1 to 270 days after the date of issue.

Accepted Answer

A)  Commercial paper 
B)  CDs 
C)  Treasury bills 
D)  Bonds 
A)  Commercial paper 
B)  CDs 
C)  Treasury bills 
D)  Bonds

Question 13

Securities are sold to the investing public in two ways: in open auctions and through investment bankers.

Accepted Answer

A) True 
 B)False

Question 14

What provision allows the issuer to redeem the bond before its maturity at a specified price?

Accepted Answer

A)  Bond provision 
B)  Convertible provision 
C)  Redeem provision 
D)  Call provision 
A)  Bond provision 
B)  Convertible provision 
C)  Redeem provision 
D)  Call provision

Question 15

The market interest rate does not have any effect on bond prices.

Accepted Answer

A) True 
 B)False

Question 16

Describe the global financial environment.

Accepted Answer

Major Canadian banks have extensive inte

Question 17

Indirect transfer of funds occurs through: _____.

Accepted Answer

A)  financial institutions 
B)  financial markets 
C)  personal checks 
D)  both a and b 
A)  financial institutions 
B)  financial markets 
C)  personal checks 
D)  both a and b

Question 18

A(n)____ allows the issuer to redeem the bond before its maturity at a specified price.

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

Question 19

Alex buys a money market instrument.It will mature in ____.

Accepted Answer

A)  ten years 
B)  two years 
C)  one year 
D)  six months 
A)  ten years 
B)  two years 
C)  one year 
D)  six months

Question 20

The Toronto Stock Exchange (TSX)is a secondary market.

Accepted Answer

A) True 
 B)False

_____are creditors of a corporation or government body.

Bondholders are creditors,therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy,reorganization,or liquidation.

Explain what a mutual fund is and give an example of one.

Nina's financial institution has an office next to where she works.Everyone who uses the financial institution's services either works for Nina's employer or is related to someone who does.Nina's financial institution is a ________.

When the Bank of Canada sells government securities,banks have money to lend and economic growth .

All of the following are types of securities except_____.

The process used by an insurance company to determine whom to insure and how much to charge is called ________.

When evaluating loan applications,banks consider the borrower's ability and willingness to repay the loan.

Under the Bank Act the federal government is responsible for regulating the banking sector.

What is the Bank of Canada's most important function? How does this function affect the nation's rate of inflation and employment?

According to a recent survey _________________ were the highest users of Internet banking.

_____ is a form of short-term financing sold by corporations,such as Salton Brands,that mature from 1 to 270 days after the date of issue.

Securities are sold to the investing public in two ways: in open auctions and through investment bankers.

What provision allows the issuer to redeem the bond before its maturity at a specified price?

The market interest rate does not have any effect on bond prices.

Describe the global financial environment.

Indirect transfer of funds occurs through: _____.

A(n)____ allows the issuer to redeem the bond before its maturity at a specified price.

Alex buys a money market instrument.It will mature in ____.

The Toronto Stock Exchange (TSX)is a secondary market.

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

_____are creditors of a corporation or government body.

Bondholders are creditors,therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy,reorganization,or liquidation.

Explain what a mutual fund is and give an example of one.

Nina's financial institution has an office next to where she works.Everyone who uses the financial institution's services either works for Nina's employer or is related to someone who does.Nina's financial institution is a ________.

When the Bank of Canada sells government securities,banks have ________ money to lend and economic growth ________.

All of the following are types of securities except_____.

The process used by an insurance company to determine whom to insure and how much to charge is called ________.

When evaluating loan applications,banks consider the borrower's ability and willingness to repay the loan.

Under the Bank Act the federal government is responsible for regulating the banking sector.

What is the Bank of Canada's most important function? How does this function affect the nation's rate of inflation and employment?

According to a recent survey _________________ were the highest users of Internet banking.

_____ is a form of short-term financing sold by corporations,such as Salton Brands,that mature from 1 to 270 days after the date of issue.

Securities are sold to the investing public in two ways: in open auctions and through investment bankers.

What provision allows the issuer to redeem the bond before its maturity at a specified price?

The market interest rate does not have any effect on bond prices.

Describe the global financial environment.

Indirect transfer of funds occurs through: _____.

A(n)____ allows the issuer to redeem the bond before its maturity at a specified price.

Alex buys a money market instrument.It will mature in ____.

The Toronto Stock Exchange (TSX)is a secondary market.

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

When the Bank of Canada sells government securities,banks have money to lend and economic growth .