Question 1

When the government of Canada issues money on a short-term basis, which type of bonds does it issue?

Accepted Answer

A)  certificates of deposit 
B)  notes 
C)  treasury bonds 
D)  treasury bills 
A)  certificates of deposit 
B)  notes 
C)  treasury bonds 
D)  treasury bills

Question 2

Fleur Ott owns 100 shares of Armstrong Tool Company cumulative preferred shares. The dividend is $6 per share. Armstrong's board of directors omitted the preferred dividends in 2000, 2001, and 2002. In 2003, the dividend was resumed. Which of the following represents the amount that Armstrong Tool owes Ott?

Accepted Answer

A)  $600 
B)  $1,200 
C)  $1,800 
D)  $2,400 
A)  $600 
B)  $1,200 
C)  $1,800 
D)  $2,400

Question 3

The vast majority of securities transactions take place in which of the following markets?

Accepted Answer

A)  secondary market 
B)  over-the-counter market 
C)  primary market 
D)  broker market 
A)  secondary market 
B)  over-the-counter market 
C)  primary market 
D)  broker market

Question 4

Who are the link between public companies and the investors interested in buying their stock?

Accepted Answer

A)  underwriters 
B)  investment bankers 
C)  account managers 
D)  stockbrokers 
A)  underwriters 
B)  investment bankers 
C)  account managers 
D)  stockbrokers

Question 5

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of which of the following roles?

Accepted Answer

A)  stockbroker 
B)  commercial banker 
C)  investment banker 
D)  transfer agent 
A)  stockbroker 
B)  commercial banker 
C)  investment banker 
D)  transfer agent

Question 6

Which of the following is the process of buying securities from corporations and governments and reselling them to the public?

Accepted Answer

A)  circuit breaking 
B)  rounding up 
C)  brokering 
D)  underwriting 
A)  circuit breaking 
B)  rounding up 
C)  brokering 
D)  underwriting

Question 7

The secondary securities market is best described by which of the following?

Accepted Answer

A)  It is a substandard market. 
B)  It is a new issue market. 
C)  It is a market for securities that are not allowed in the primary market. 
D)  It is a market in which previously issued securities are traded. 
A)  It is a substandard market. 
B)  It is a new issue market. 
C)  It is a market for securities that are not allowed in the primary market. 
D)  It is a market in which previously issued securities are traded.

Question 8

The issuance of bonds is a type of debt financing.

Accepted Answer

A) True 
 B)False

Question 9

What is the primary securities market?

Accepted Answer

A)  place to trade bonds 
B)  market in which new securities are sold to the public 
C)  central location where securities are traded 
D)  location for buying and selling primary futures 
A)  place to trade bonds 
B)  market in which new securities are sold to the public 
C)  central location where securities are traded 
D)  location for buying and selling primary futures

Question 10

When Tiara Petark wanted to buy a new pickup truck, her credit rating was poor. Petark found that the only place she could get a loan was from which of the following?

Accepted Answer

A)  brokerage company 
B)  finance company 
C)  insurance company 
D)  trust company 
A)  brokerage company 
B)  finance company 
C)  insurance company 
D)  trust company

Question 11

What is the Bank of Canada's most frequently used and most flexible tool?

Accepted Answer

A)  open market operations 
B)  discount rate 
C)  reserve requirement 
D)  prime rate 
A)  open market operations 
B)  discount rate 
C)  reserve requirement 
D)  prime rate

Question 12

Alli Kamal purchased a $1,000 bond from Textron, which Textron must pay back on August 1, 2015. That date is known as which of the following?

Accepted Answer

A)  maturity date 
B)  indenture date 
C)  debenture date 
D)  date of issue 
A)  maturity date 
B)  indenture date 
C)  debenture date 
D)  date of issue

Question 13

A ten-dollar bill can be changed into two five-dollar bills or ten loonies. This key characteristic of money is known as which of the following?

Accepted Answer

A)  durability 
B)  divisibility 
C)  portability 
D)  scarcity 
A)  durability 
B)  divisibility 
C)  portability 
D)  scarcity

Question 14

Holders of preferred shares enjoy which of the following advantages?

Accepted Answer

A)  They vote, but stand last in line for dividends. 
B)  They elect the board of directors. 
C)  They receive a fixed dividend. 
D)  They receive dividends before bondholders receive interest. 
A)  They vote, but stand last in line for dividends. 
B)  They elect the board of directors. 
C)  They receive a fixed dividend. 
D)  They receive dividends before bondholders receive interest.

Question 15

Suppose Scotiabank borrows funds from the Bank of Canada. What is the rate the Bank of Canada charges Scotiabank?

Accepted Answer

A)  going rate 
B)  bank rate 
C)  prime rate 
D)  commercial bank rate 
A)  going rate 
B)  bank rate 
C)  prime rate 
D)  commercial bank rate

Question 16

Examples of time deposits are savings accounts, money market deposit accounts, and certificates of deposit.

Accepted Answer

A) True 
 B)False

Question 17

Deregulation of the financial industry allows banks to offer insurance and brokerage services.

Accepted Answer

A) True 
 B)False

Question 18

If you are optimistic about the outlook for the stock market and the near-term economy, you have a bullish outlook.

Accepted Answer

A) True 
 B)False

Question 19

The process in which financial institutions act as go-between between the suppliers and demanders of funds is called which of the following?

Accepted Answer

A)  monetary intermediaries 
B)  financial intermediation 
C)  financial brokerage 
D)  monetary arbitrage 
A)  monetary intermediaries 
B)  financial intermediation 
C)  financial brokerage 
D)  monetary arbitrage

Question 20

What is cash held in the form of coins and paper money?

Accepted Answer

A)  revenue 
B)  treasury funds 
C)  currency 
D)  time deposits 
A)  revenue 
B)  treasury funds 
C)  currency 
D)  time deposits

When the government of Canada issues money on a short-term basis, which type of bonds does it issue?

The vast majority of securities transactions take place in which of the following markets?

Who are the link between public companies and the investors interested in buying their stock?

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of which of the following roles?

Which of the following is the process of buying securities from corporations and governments and reselling them to the public?

The secondary securities market is best described by which of the following?

The issuance of bonds is a type of debt financing.

What is the primary securities market?

When Tiara Petark wanted to buy a new pickup truck, her credit rating was poor. Petark found that the only place she could get a loan was from which of the following?

What is the Bank of Canada's most frequently used and most flexible tool?

Alli Kamal purchased a $1,000 bond from Textron, which Textron must pay back on August 1, 2015. That date is known as which of the following?

A ten-dollar bill can be changed into two five-dollar bills or ten loonies. This key characteristic of money is known as which of the following?

Holders of preferred shares enjoy which of the following advantages?

Suppose Scotiabank borrows funds from the Bank of Canada. What is the rate the Bank of Canada charges Scotiabank?

Examples of time deposits are savings accounts, money market deposit accounts, and certificates of deposit.

Deregulation of the financial industry allows banks to offer insurance and brokerage services.

If you are optimistic about the outlook for the stock market and the near-term economy, you have a bullish outlook.

The process in which financial institutions act as go-between between the suppliers and demanders of funds is called which of the following?

What is cash held in the form of coins and paper money?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Finance

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Exam 17: Understanding Money and the Canadian Financial System

When the government of Canada issues money on a short-term basis, which type of bonds does it issue?

The vast majority of securities transactions take place in which of the following markets?

Who are the link between public companies and the investors interested in buying their stock?

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of which of the following roles?

Which of the following is the process of buying securities from corporations and governments and reselling them to the public?

The secondary securities market is best described by which of the following?

The issuance of bonds is a type of debt financing.

What is the primary securities market?

When Tiara Petark wanted to buy a new pickup truck, her credit rating was poor. Petark found that the only place she could get a loan was from which of the following?

What is the Bank of Canada's most frequently used and most flexible tool?

Alli Kamal purchased a $1,000 bond from Textron, which Textron must pay back on August 1, 2015. That date is known as which of the following?

A ten-dollar bill can be changed into two five-dollar bills or ten loonies. This key characteristic of money is known as which of the following?

Holders of preferred shares enjoy which of the following advantages?

Suppose Scotiabank borrows funds from the Bank of Canada. What is the rate the Bank of Canada charges Scotiabank?

Examples of time deposits are savings accounts, money market deposit accounts, and certificates of deposit.

Deregulation of the financial industry allows banks to offer insurance and brokerage services.

If you are optimistic about the outlook for the stock market and the near-term economy, you have a bullish outlook.

The process in which financial institutions act as go-between between the suppliers and demanders of funds is called which of the following?

What is cash held in the form of coins and paper money?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Finance

Filters