Question 1

A(n)____ sets a price ceiling when buying or a price floor when selling.

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 2

Securities are issued and traded in the____.

Accepted Answer

A)  financial market 
B)  securities market 
C)  government market 
D)  super market 
A)  financial market 
B)  securities market 
C)  government market 
D)  super market

Question 3

Municipal bonds are bonds issued by the federal government.

Accepted Answer

A) True 
 B)False

Question 4

Treasury bills have a minimum denomination of ____.

Accepted Answer

A)  $100,000 
B)  $1,000 
C)  10,000 
D)  100 
A)  $100,000 
B)  $1,000 
C)  10,000 
D)  100

Question 5

Most nations do not have a central bank similar to the U.S.Federal Reserve.

Accepted Answer

A) True 
 B)False

Question 6

____ represent obligations on the part of issuers to provide purchasers with expected or stated returns on the funds invested or loaned.

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 7

The Canada Pension Plan fund has assets of over $148 billion.

Accepted Answer

A) True 
 B)False

Question 8

A commercial finance company supplies short-term funds to businesses that use their tangible assets as collateral.

Accepted Answer

A) True 
 B)False

Question 9

Bonds with ratings of BB and below are classified as speculative,or so-called junk,bonds.

Accepted Answer

A) True 
 B)False

Question 10

In the long run stock prices tend to follow a company's revenues.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of the four basic responsibilities the Bank of Canada has for controlling the growth in the supply of money and credit?

Accepted Answer

A)  Regulating monetary policy 
B)  Designing and issuing bank notes 
C)  Regulating the financial system 
D)  Cheque clearing 
A)  Regulating monetary policy 
B)  Designing and issuing bank notes 
C)  Regulating the financial system 
D)  Cheque clearing

Question 12

The NASDAQ is a computerized communications network that links member investment firms and is the world's largest intranet.

Accepted Answer

A) True 
 B)False

Question 13

When a company offers stock for sale to the general public for the first time,it is called an initial public offering.

Accepted Answer

A) True 
 B)False

Question 14

In the Canadian financial system,which of the following is a net saver?

Accepted Answer

A)  The government 
B)  Business 
C)  Households 
D)  Financial institutions 
A)  The government 
B)  Business 
C)  Households 
D)  Financial institutions

Question 15

If the Bank of Canada pushes interest rates lower,policymakers at other nations' central banks will most likely ____.

Accepted Answer

A)  increase their rates 
B)  follow suit,and drop their rates as well 
C)  do nothing;the Fed's actions have no influence on other countries central banks 
D)  keep their rates the same because a drop in U.S.rates will help their economy 
A)  increase their rates 
B)  follow suit,and drop their rates as well 
C)  do nothing;the Fed's actions have no influence on other countries central banks 
D)  keep their rates the same because a drop in U.S.rates will help their economy

Question 16

The TSX outsources market surveillance to the IIROC.

Accepted Answer

A) True 
 B)False

Question 17

Nondepository institutions include life insurance companies,such as Manulife Financial;pension funds,such as the Ontario Teachers ' Pension Plan;and mutual funds.

Accepted Answer

A) True 
 B)False

Question 18

Canadian banks make few foreign investments due to regulatory restrictions.

Accepted Answer

A) True 
 B)False

Question 19

All of the following statements are correct EXCEPT ________.

Accepted Answer

A)  The number of commercial banks is declining each year 
B)  Commercial banks are prohibited from selling securities or insurance 
C)  Commercial banks are the most important financial institution 
D)  Banks offer the widest range of services of any financial institution 
A)  The number of commercial banks is declining each year 
B)  Commercial banks are prohibited from selling securities or insurance 
C)  Commercial banks are the most important financial institution 
D)  Banks offer the widest range of services of any financial institution

Question 20

By selling ___,a firm obtains long-term debt capital.

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

A(n)____ sets a price ceiling when buying or a price floor when selling.

Securities are issued and traded in the____.

Municipal bonds are bonds issued by the federal government.

Treasury bills have a minimum denomination of ____.

Most nations do not have a central bank similar to the U.S.Federal Reserve.

____ represent obligations on the part of issuers to provide purchasers with expected or stated returns on the funds invested or loaned.

The Canada Pension Plan fund has assets of over $148 billion.

A commercial finance company supplies short-term funds to businesses that use their tangible assets as collateral.

Bonds with ratings of BB and below are classified as speculative,or so-called junk,bonds.

In the long run stock prices tend to follow a company's revenues.

Which of the following is not one of the four basic responsibilities the Bank of Canada has for controlling the growth in the supply of money and credit?

The NASDAQ is a computerized communications network that links member investment firms and is the world's largest intranet.

When a company offers stock for sale to the general public for the first time,it is called an initial public offering.

In the Canadian financial system,which of the following is a net saver?

If the Bank of Canada pushes interest rates lower,policymakers at other nations' central banks will most likely ____.

The TSX outsources market surveillance to the IIROC.

Nondepository institutions include life insurance companies,such as Manulife Financial;pension funds,such as the Ontario Teachers ' Pension Plan;and mutual funds.

Canadian banks make few foreign investments due to regulatory restrictions.

All of the following statements are correct EXCEPT ________.

By selling ___,a firm obtains long-term debt capital.

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

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Exam 16: The Financial System

A(n)____ sets a price ceiling when buying or a price floor when selling.

Securities are issued and traded in the____.

Municipal bonds are bonds issued by the federal government.

Treasury bills have a minimum denomination of ____.

Most nations do not have a central bank similar to the U.S.Federal Reserve.

____ represent obligations on the part of issuers to provide purchasers with expected or stated returns on the funds invested or loaned.

The Canada Pension Plan fund has assets of over $148 billion.

A commercial finance company supplies short-term funds to businesses that use their tangible assets as collateral.

Bonds with ratings of BB and below are classified as speculative,or so-called junk,bonds.

In the long run stock prices tend to follow a company's revenues.

Which of the following is not one of the four basic responsibilities the Bank of Canada has for controlling the growth in the supply of money and credit?

The NASDAQ is a computerized communications network that links member investment firms and is the world's largest intranet.

When a company offers stock for sale to the general public for the first time,it is called an initial public offering.

In the Canadian financial system,which of the following is a net saver?

If the Bank of Canada pushes interest rates lower,policymakers at other nations' central banks will most likely ____.

The TSX outsources market surveillance to the IIROC.

Nondepository institutions include life insurance companies,such as Manulife Financial;pension funds,such as the Ontario Teachers ' Pension Plan;and mutual funds.

Canadian banks make few foreign investments due to regulatory restrictions.

All of the following statements are correct EXCEPT ________.

By selling ___,a firm obtains long-term debt capital.

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