Question 1

A brokerage firm is an example of a depository financial institution.

Accepted Answer

A) True 
 B)False

Question 2

The secondary market is like the used-car market; it deals in "old" or already issued securities.

Accepted Answer

A) True 
 B)False

Question 3

Unlike futures contracts,the price paid for options is the maximum amount that can be lost.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following institutions' primary activity is underwriting?

Accepted Answer

A)  the Toronto Stock Exchange 
B)  investment bankers 
C)  stockbrokers 
D)  institutional investors 
A)  the Toronto Stock Exchange 
B)  investment bankers 
C)  stockbrokers 
D)  institutional investors

Question 5

When a corporation issues a bond that can be exchanged for common shares at a later date,the company has issued which of the following type of bond?

Accepted Answer

A)  convertible bonds 
B)  premium bonds 
C)  debenture bonds 
D)  preferred bonds 
A)  convertible bonds 
B)  premium bonds 
C)  debenture bonds 
D)  preferred bonds

Question 6

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

Question 7

What is wrong with the following statement: "Credit cards replace money"?

Accepted Answer

Credit cards do not

Question 8

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses.

Accepted Answer

A) True 
 B)False

Question 9

____________________ bonds may be exchanged for a specified number of shares of common stock.

Accepted Answer

The answer of ____________________ bonds may be exchanged for a...

Question 10

Another term for a chequing account is a time deposit.

Accepted Answer

A) True 
 B)False

Question 11

____________________ shares are a form of equity financing that offer a fixed dividend that is paid before the common shares.

Accepted Answer

The answer of ____________________ shares are a form of equity...

Question 12

According to your text,which of the following type of bonds was issued by FedEx?

Accepted Answer

A)  credit bonds 
B)  revenue bond bonds 
C)  premium bond bonds 
D)  debenture bonds 
A)  credit bonds 
B)  revenue bond bonds 
C)  premium bond bonds 
D)  debenture bonds

Question 13

Which of the following is one of the key characteristics required in order for money to be an acceptable medium of exchange?

Accepted Answer

A)  portability 
B)  profitability 
C)  divisibility 
D)  distributability 
A)  portability 
B)  profitability 
C)  divisibility 
D)  distributability

Question 14

A mutual fund serves which of the following functions?

Accepted Answer

A)  It invests in companies that have mutual interests. 
B)  It brings together investors with a mutual interest. 
C)  It invests only in mutual insurance companies. 
D)  It pools investors' funds to buy a selection of securities that meet stated investment goals. 
A)  It invests in companies that have mutual interests. 
B)  It brings together investors with a mutual interest. 
C)  It invests only in mutual insurance companies. 
D)  It pools investors' funds to buy a selection of securities that meet stated investment goals.

Question 15

Which of the following is an example of a trend that is influencing the direction of banking today?

Accepted Answer

A)  integration of banking with insurance and brokerage services 
B)  the reduction in the range of services banks are allowed to offer 
C)  the reduction in the number of banks 
D)  the use of more tellers 
A)  integration of banking with insurance and brokerage services 
B)  the reduction in the range of services banks are allowed to offer 
C)  the reduction in the number of banks 
D)  the use of more tellers

Question 16

How do investors use bond ratings?

Accepted Answer

to evaluat

Question 17

A market generally associated with investor pessimism and economic slowdown is called a ____________________ market.

Accepted Answer

The answer of A market generally associated with investor pessimism...

Question 18

Which of the following statements BEST describes credit unions?

Accepted Answer

A)  Credit unions are for-profit institutions. 
B)  Credit unions are not subject to provincial regulations. 
C)  Credit unions are usually small and locally owned. 
D)  Credit union members typically have nothing in common with each other. 
A)  Credit unions are for-profit institutions. 
B)  Credit unions are not subject to provincial regulations. 
C)  Credit unions are usually small and locally owned. 
D)  Credit union members typically have nothing in common with each other.

Question 19

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 20

The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?

Accepted Answer

A)  preferred shares 
B)  common shares 
C)  convertible preferred shares 
D)  convertible bonds 
A)  preferred shares 
B)  common shares 
C)  convertible preferred shares 
D)  convertible bonds

A brokerage firm is an example of a depository financial institution.

The secondary market is like the used-car market; it deals in "old" or already issued securities.

Unlike futures contracts,the price paid for options is the maximum amount that can be lost.

Which of the following institutions' primary activity is underwriting?

When a corporation issues a bond that can be exchanged for common shares at a later date,the company has issued which of the following type of bond?

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

What is wrong with the following statement: "Credit cards replace money"?

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses.

____________________ bonds may be exchanged for a specified number of shares of common stock.

Another term for a chequing account is a time deposit.

____________________ shares are a form of equity financing that offer a fixed dividend that is paid before the common shares.

According to your text,which of the following type of bonds was issued by FedEx?

Which of the following is one of the key characteristics required in order for money to be an acceptable medium of exchange?

A mutual fund serves which of the following functions?

Which of the following is an example of a trend that is influencing the direction of banking today?

How do investors use bond ratings?

A market generally associated with investor pessimism and economic slowdown is called a ____________________ market.

Which of the following statements BEST describes credit unions?

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

The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?

understanding Evolving Economic Systems and Competition

the Global Marketplace and Governments’ Roles

Social Trends, social Responsibility, and Making Ethical Decisions in Business

Using Technology to Manage Information and for Business Success

Forms of Business Ownership

Entrepreneurship and Small Business

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Achieving World-class Operations Management

Understanding the Customer

Creating Marketing Strategies

Using Financial Information and Accounting

Managing the Firm’s Finances

Filters

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

A brokerage firm is an example of a depository financial institution.

The secondary market is like the used-car market; it deals in "old" or already issued securities.

Unlike futures contracts,the price paid for options is the maximum amount that can be lost.

Which of the following institutions' primary activity is underwriting?

When a corporation issues a bond that can be exchanged for common shares at a later date,the company has issued which of the following type of bond?

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

What is wrong with the following statement: "Credit cards replace money"?

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses.

____________________ bonds may be exchanged for a specified number of shares of common stock.

Another term for a chequing account is a time deposit.

____________________ shares are a form of equity financing that offer a fixed dividend that is paid before the common shares.

According to your text,which of the following type of bonds was issued by FedEx?

Which of the following is one of the key characteristics required in order for money to be an acceptable medium of exchange?

A mutual fund serves which of the following functions?

Which of the following is an example of a trend that is influencing the direction of banking today?

How do investors use bond ratings?

A market generally associated with investor pessimism and economic slowdown is called a ____________________ market.

Which of the following statements BEST describes credit unions?

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

The class of equity securities that provides the most potential for growth and appreciation is known as which of the following?

understanding Evolving Economic Systems and Competition

the Global Marketplace and Governments’ Roles

Social Trends, social Responsibility, and Making Ethical Decisions in Business

Using Technology to Manage Information and for Business Success

Forms of Business Ownership

Entrepreneurship and Small Business

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Achieving World-class Operations Management

Understanding the Customer

Creating Marketing Strategies

Using Financial Information and Accounting

Managing the Firm’s Finances

Filters