Question 1

An insurance management tool to reduce moral hazard is to ________.

Accepted Answer

A)  charge the same premium for different risks 
B)  limit the amount of insurance provided 
C)  reduce the deductible to zero 
D)  prohibit coinsurance 
A)  charge the same premium for different risks 
B)  limit the amount of insurance provided 
C)  reduce the deductible to zero 
D)  prohibit coinsurance

Question 2

An insurance management tool to discourage policyholders from engaging in risky activities that make an insurance claim more likely is known as a/an ________.

Accepted Answer

A)  screening 
B)  restrictive provision 
C)  deductible 
D)  coinsurance 
A)  screening 
B)  restrictive provision 
C)  deductible 
D)  coinsurance

Question 3

A defined-benefit plan ________.

Accepted Answer

A)  has borrowed from the public 
B)  has purchased foreign currency 
C)  sets future income payments in advance 
D)  has agreed to make periodic payments for a specific period of time 
A)  has borrowed from the public 
B)  has purchased foreign currency 
C)  sets future income payments in advance 
D)  has agreed to make periodic payments for a specific period of time

Question 4

A defined-contribution plan ________.

Accepted Answer

A)  borrows from the public 
B)  purchases foreign currency 
C)  sets future income payments in advance 
D)  makes periodic payments for a specific period of time 
A)  borrows from the public 
B)  purchases foreign currency 
C)  sets future income payments in advance 
D)  makes periodic payments for a specific period of time

Question 5

The Federal Reserve Board set up a ________ credit facility to provide liquidity to AIG.

Accepted Answer

A)  $85 billion 
B)  $8.5 billion 
C)  $85 million 
D)  $8.5 million 
A)  $85 billion 
B)  $8.5 billion 
C)  $85 million 
D)  $8.5 million

Question 6

Who assists in the initial sale of securities in the secondary market?

Accepted Answer

A)  The Bank of Canada 
B)  Securities brokers 
C)  Business finance companies 
D)  Investment banks 
A)  The Bank of Canada 
B)  Securities brokers 
C)  Business finance companies 
D)  Investment banks

Question 7

Non-deposit taking financial institutions that acquire funds by issuing commercial paper or stock and bonds or borrowing from banks,and that use the proceeds to make loans are known as ________.

Accepted Answer

A)  commodity companies 
B)  redistribution companies 
C)  barter companies 
D)  finance companies 
A)  commodity companies 
B)  redistribution companies 
C)  barter companies 
D)  finance companies

Question 8

In a venture capital funds,investors' money is invested in ________.

Accepted Answer

A)  private equity investments 
B)  public company investments 
C)  mutual fund investments 
D)  government bond investments 
A)  private equity investments 
B)  public company investments 
C)  mutual fund investments 
D)  government bond investments

Question 9

Casualty insurance companies ________.

Accepted Answer

A)  cover losses of real property 
B)  pay a sum of money if noncatastrophic events occur 
C)  provide income if a person dies, is incapacitated by illness, or retires 
D)  protect against malpractice exposures 
A)  cover losses of real property 
B)  pay a sum of money if noncatastrophic events occur 
C)  provide income if a person dies, is incapacitated by illness, or retires 
D)  protect against malpractice exposures

Question 10

Which of the following is an example of a fully funded plan?

Accepted Answer

A)  Contributions are sufficient to payout the benefits but earnings are not. 
B)  Contributions and earnings are not sufficient to payout the benefits. 
C)  Contributions and earnings are sufficient to payout the benefits. 
D)  Earnings are sufficient to payout the benefits but contributions are not. 
A)  Contributions are sufficient to payout the benefits but earnings are not. 
B)  Contributions and earnings are not sufficient to payout the benefits. 
C)  Contributions and earnings are sufficient to payout the benefits. 
D)  Earnings are sufficient to payout the benefits but contributions are not.

An insurance management tool to reduce moral hazard is to ________.

An insurance management tool to discourage policyholders from engaging in risky activities that make an insurance claim more likely is known as a/an ________.

A defined-benefit plan ________.

A defined-contribution plan ________.

The Federal Reserve Board set up a ________ credit facility to provide liquidity to AIG.

Who assists in the initial sale of securities in the secondary market?

Non-deposit taking financial institutions that acquire funds by issuing commercial paper or stock and bonds or borrowing from banks,and that use the proceeds to make loans are known as ________.

In a venture capital funds,investors' money is invested in ________.

Casualty insurance companies ________.

Which of the following is an example of a fully funded plan?

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Exam 12: Nonbank Finance

An insurance management tool to reduce moral hazard is to ________.

An insurance management tool to discourage policyholders from engaging in risky activities that make an insurance claim more likely is known as a/an ________.

A defined-benefit plan ________.

A defined-contribution plan ________.

The Federal Reserve Board set up a ________ credit facility to provide liquidity to AIG.

Who assists in the initial sale of securities in the secondary market?

Non-deposit taking financial institutions that acquire funds by issuing commercial paper or stock and bonds or borrowing from banks,and that use the proceeds to make loans are known as ________.

In a venture capital funds,investors' money is invested in ________.

Casualty insurance companies ________.

Which of the following is an example of a fully funded plan?

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters