Question 1

Which of the following is an example of permanent life insurance?

Accepted Answer

A) The policy has no the cash value. 
B) It provides an annuity until death. 
C) The premium is constant through the life of the policy. 
D) The premium is matched every year to the amount needed to match against death. 
A) The policy has no the cash value. 
B) It provides an annuity until death. 
C) The premium is constant through the life of the policy. 
D) The premium is matched every year to the amount needed to match against death.

Question 2

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 3

Securities brokers and dealers, investment banks, and organized exchanges ________.

Accepted Answer

A) do not perform the intermediation function 
B) can be thought of as "financial facilitators" 
C) are important in the process of channelling funds from savers to spenders 
D) All of the above 
A) do not perform the intermediation function 
B) can be thought of as "financial facilitators" 
C) are important in the process of channelling funds from savers to spenders 
D) All of the above

Question 4

Which of the following is true?

Accepted Answer

A) Insider information is public information. 
B) Brokerage firms act as brokers, dealers, and investment bankers. 
C) Dealers are pure intermediaries who act as agents. 
D) Brokers make their living by selling securities at a higher price than what they paid for them. 
A) Insider information is public information. 
B) Brokerage firms act as brokers, dealers, and investment bankers. 
C) Dealers are pure intermediaries who act as agents. 
D) Brokers make their living by selling securities at a higher price than what they paid for them.

Question 5

Sovereign wealth funds can be a concern because they ________.

Accepted Answer

A) could cause market instability 
B) raise national security issues 
C) are secretive 
D) All of the above 
A) could cause market instability 
B) raise national security issues 
C) are secretive 
D) All of the above

Question 6

Reinsurance ________.

Accepted Answer

A) allows the insured to reduce the premium by accepting a portion of the risk that would otherwise be allocated to the insurance company 
B) allows insurance companies to reduce their risks of exposure by allocating a portion of the risk to another company in exchange for a portion of the premium 
C) allows insurance companies to reduce their risks of exposure by allocating a portion of the risk to the insured in exchange for a rebate on the premium 
D) None of the above 
A) allows the insured to reduce the premium by accepting a portion of the risk that would otherwise be allocated to the insurance company 
B) allows insurance companies to reduce their risks of exposure by allocating a portion of the risk to another company in exchange for a portion of the premium 
C) allows insurance companies to reduce their risks of exposure by allocating a portion of the risk to the insured in exchange for a rebate on the premium 
D) None of the above

Question 7

________ funds are state-owned investment funds that invest in foreign assets.

Accepted Answer

A) Private pension 
B) Front load 
C) Sovereign wealth 
D) Foreign mutual 
A) Private pension 
B) Front load 
C) Sovereign wealth 
D) Foreign mutual

Question 8

Fannie Mae and Freddie Mac ________.

Accepted Answer

A) are U.S. government agencies that provide funds to the mortgage market 
B) are the names of U.S. central banks 
C) demonstrated great stability during the subprime crisis 
D) are pivot points in the business cycle 
A) are U.S. government agencies that provide funds to the mortgage market 
B) are the names of U.S. central banks 
C) demonstrated great stability during the subprime crisis 
D) are pivot points in the business cycle

Question 9

A corporation in order to issue new shares will have to use ________.

Accepted Answer

A) financial leverage 
B) an investment bank 
C) accumulated profits 
D) debt 
A) financial leverage 
B) an investment bank 
C) accumulated profits 
D) debt

Which of the following is an example of permanent life insurance?

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 ________.

Securities brokers and dealers, investment banks, and organized exchanges ________.

Which of the following is true?

Sovereign wealth funds can be a concern because they ________.

Reinsurance ________.

________ funds are state-owned investment funds that invest in foreign assets.

Fannie Mae and Freddie Mac ________.

A corporation in order to issue new shares will have to use ________.

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

Financial Crises in Emerging Markets

The ISLM Model

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Exam 29: Non-Bank Finance

Which of the following is an example of permanent life insurance?

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 ________.

Securities brokers and dealers, investment banks, and organized exchanges ________.

Which of the following is true?

Sovereign wealth funds can be a concern because they ________.

Reinsurance ________.

________ funds are state-owned investment funds that invest in foreign assets.

Fannie Mae and Freddie Mac ________.

A corporation in order to issue new shares will have to use ________.

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

Financial Crises in Emerging Markets

The ISLM Model

Filters