Exam 15: Understanding Money, financial Institutions, and the Securities Markets

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?

Brokerage firms are paid commissions only when the customer earns a profit.

Standard and Poor's has evaluated Syntex Corporation's new issue of bonds as BB+.This is an example of which of the following?

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?

What are demand deposits?

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

What is another name for a stockbroker?

The Canadian Deposit Insurance Corporation insures only deposits at commercial banks.

____________________ is the process in which financial institutions help the suppliers and demanders of funds make transactions.

Tameika Wilson owns 100 shares of Telus Mobility.Last year Telus Mobility sent her four more shares instead of her usual cash dividend.Which of the following did Telus distribute to its shareholders?

Being able to split a $10 bill into $5,$1,and coins illustrates the ____________________ characteristic of money.

Jayson Smith is a recent college graduate who found himself in debt as a result of credit card expenditures and is in need of dependable transportation.Smith recently purchased a new motorcycle from Watt Cycles.In financing the cycle,Smith found that he would be making payments to Beneficial Corp.,a company that deals in poor credit risks and short-term loans.Smith was dealing with which of the following?

Megan Voorhees recently inherited $200,000.She has invested the inherited money in real estate and government securities.Voorhees is using her money for which of the following purposes?

Dividends can be paid only after all the other obligations of the firm have been met.

List three types of non-depository financial institutions.

Which of the following BEST describes a mutual fund?

A secured bond is the type of bond issued by a financially secure corporation.

Gino Vocci buys and sells shares and bonds and provides advice on when to buy and when to sell to his clients.Vocci works for which of the following type of nondepository financial institution?

What is the most important function of the Bank of Canada?

Depository financial institutions include commercial banks,trust companies,and credit unions.