Question 1

The discount rate is the rate banks charge one another for short-term loans.

Accepted Answer

A) True 
 B)False

Question 2

M1 consists of currency in circulation and balances in bank checking accounts.

Accepted Answer

A) True 
 B)False

Question 3

Raising the reserve requirement tends to increase the supply of money,thereby lowering interest rates.

Accepted Answer

A) True 
 B)False

Question 4

Bonds with ratings of BBB and above are classified as ____.

Accepted Answer

A)  investment-grade bonds 
B)  speculative bond 
C)  junk bonds 
D)  corporate bonds 
A)  investment-grade bonds 
B)  speculative bond 
C)  junk bonds 
D)  corporate bonds

Question 5

Commercial paper is generally considered a very low-risk security.

Accepted Answer

A) True 
 B)False

Question 6

Virtually all developed countries and many developing countries have stock exchanges.

Accepted Answer

A) True 
 B)False

Question 7

The process by which money flows from savers to users is called the ____.

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 8

Explain how the fourth market has begun to open up to smaller,individual investors.

Accepted Answer

The fourth market has opened up to small

Question 9

In the secondary market,firms and governments issue securities and sell them initially to the public.

Accepted Answer

A) True 
 B)False

Question 10

The basic form of corporate ownership is ____.

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 11

Bonds with the highest level of risk are rated AAA.

Accepted Answer

A) True 
 B)False

Question 12

All trading on the ____ takes place through its intranet,rather than on a trading floor.

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 13

Corporate bonds are a diverse group and often vary based on the ____ that backs it.

Accepted Answer

A)  collateral 
B)  value 
C)  market 
D)  company 
A)  collateral 
B)  value 
C)  market 
D)  company

Question 14

Purchasers of preferred shares are the true owners of a corporation.

Accepted Answer

A) True 
 B)False

Question 15

The financial system describes the process by which funds flow from savers to users.

Accepted Answer

A) True 
 B)False

Question 16

A _____ is a time deposit at a financial institution,such as a commercial bank,savings bank,or credit union.

Accepted Answer

A)  commercial paper 
B)  CD 
C)  Treasury bill 
D)  bond 
A)  commercial paper 
B)  CD 
C)  Treasury bill 
D)  bond

Question 17

Sales of most corporate and municipal securities are made via auctions.

Accepted Answer

A) True 
 B)False

Question 18

Bonds vary considerably in terms of risk.One tool used by bond investors to assess the risk of a bond is its so-called risk rating.

Accepted Answer

A) True 
 B)False

Question 19

Sean made a purchase at his local Wal-Mart.Instead of writing a check,Sean used a card issued by his bank with a Visa logo on the front.He entered his PIN and the purchase was automatically deducted from his checking account.Sean used his ________ card.

Accepted Answer

A)  debit 
B)  credit 
C)  ATM 
D)  point-of-sale 
A)  debit 
B)  credit 
C)  ATM 
D)  point-of-sale

Question 20

The most common type of order is called a ___.It instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.

Accepted Answer

A)  fast order 
B)  stock order 
C)  limit order 
D)  market order 
A)  fast order 
B)  stock order 
C)  limit order 
D)  market order

The discount rate is the rate banks charge one another for short-term loans.

M1 consists of currency in circulation and balances in bank checking accounts.

Raising the reserve requirement tends to increase the supply of money,thereby lowering interest rates.

Bonds with ratings of BBB and above are classified as ____.

Commercial paper is generally considered a very low-risk security.

Virtually all developed countries and many developing countries have stock exchanges.

The process by which money flows from savers to users is called the ____.

Explain how the fourth market has begun to open up to smaller,individual investors.

In the secondary market,firms and governments issue securities and sell them initially to the public.

The basic form of corporate ownership is ____.

Bonds with the highest level of risk are rated AAA.

All trading on the ____ takes place through its intranet,rather than on a trading floor.

Corporate bonds are a diverse group and often vary based on the ____ that backs it.

Purchasers of preferred shares are the true owners of a corporation.

The financial system describes the process by which funds flow from savers to users.

A _____ is a time deposit at a financial institution,such as a commercial bank,savings bank,or credit union.

Sales of most corporate and municipal securities are made via auctions.

Bonds vary considerably in terms of risk.One tool used by bond investors to assess the risk of a bond is its so-called risk rating.

Sean made a purchase at his local Wal-Mart.Instead of writing a check,Sean used a card issued by his bank with a Visa logo on the front.He entered his PIN and the purchase was automatically deducted from his checking account.Sean used his ________ card.

The most common type of order is called a ___.It instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.

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

The discount rate is the rate banks charge one another for short-term loans.

M1 consists of currency in circulation and balances in bank checking accounts.

Raising the reserve requirement tends to increase the supply of money,thereby lowering interest rates.

Bonds with ratings of BBB and above are classified as ____.

Commercial paper is generally considered a very low-risk security.

Virtually all developed countries and many developing countries have stock exchanges.

The process by which money flows from savers to users is called the ____.

Explain how the fourth market has begun to open up to smaller,individual investors.

In the secondary market,firms and governments issue securities and sell them initially to the public.

The basic form of corporate ownership is ____.

Bonds with the highest level of risk are rated AAA.

All trading on the ____ takes place through its intranet,rather than on a trading floor.

Corporate bonds are a diverse group and often vary based on the ____ that backs it.

Purchasers of preferred shares are the true owners of a corporation.

The financial system describes the process by which funds flow from savers to users.

A _____ is a time deposit at a financial institution,such as a commercial bank,savings bank,or credit union.

Sales of most corporate and municipal securities are made via auctions.

Bonds vary considerably in terms of risk.One tool used by bond investors to assess the risk of a bond is its so-called risk rating.

Sean made a purchase at his local Wal-Mart.Instead of writing a check,Sean used a card issued by his bank with a Visa logo on the front.He entered his PIN and the purchase was automatically deducted from his checking account.Sean used his ________ card.

The most common type of order is called a ___.It instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.

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