Exam 12: Nonbank Finance

________ are financial intermediaries that acquire funds by selling shares to many individuals and using the proceeds to purchase diversified portfolios of stocks and bonds.

Fannie Mae and Freddie Mac ________.

The market in which previously issued securities can be resold is called ________.

The conversion of insurance companies from being owned by policy holders to stock holders is known as ________.

When a publicly traded firm is taken private by buying all of its shares,while financing the purchase by increasing the debt of the firm,this is called ________.

Private pension plans ________.

Which of the following is true about hedge funds?

Discuss what RRSPs are and how they help to provide income at retirement.

To promote and assist in the establishment of business enterprises in Canada,the government created ________.

The institutions that assist in the trading of securities in the secondary market are called ________.

Mutual funds are regulated by ________.

The three types of finance companies are ________.

Which of the following are financial intermediaries?

Which of the following funds make investments in established businesses?

How does the economic concept of moral hazard apply to the lending activities of insurers? Provide an example.

The Toronto Stock Exchange (TSX)is ________.

Provincial regulation for finance companies does not cover any of the following except for ________.

A(n)________ is an example of a security which is currently selling on the market.

Securities are traded on the floor of the exchange with the help of a special kind of dealer-broker called a(n)________.

Investment bankers that guarantee the corporation a price on the securities and then sell them to the public are known as ________.