Question 1

Complete the following using the terms listed below.
-______ are cooperative financial institutions that are owned by their depositors, all of whom are members.

Accepted Answer

A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers 
A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers D

Question 2

Which of the following interest rates does the Bank of Canada actually set?

Accepted Answer

A)  discount rate 
B)  federal funds rate 
C)  government bond rate 
D)  commercial paper rate 
A)  discount rate 
B)  federal funds rate 
C)  government bond rate 
D)  commercial paper rate A

Question 3

Raising the reserve requirement tends to increase the supply of money, thereby lowering interest rates.

Accepted Answer

A) True 
 B)False  False

Question 4

The basic form of corporate ownership is ______.

Accepted Answer

A)  preferred stock 
B)  common stock 
C)  convertible securities 
D)  standard stock 
A)  preferred stock 
B)  common stock 
C)  convertible securities 
D)  standard stock

Question 5

When evaluating loan applications, banks consider the borrower's ability and willingness to repay the loan.

Accepted Answer

A) True 
 B)False

Question 6

______ are short-term debt securities issued by governments, financial institutions, and corporations.

Accepted Answer

A)  Money market instruments 
B)  Bonds 
C)  Cheques 
D)  Stock 
A)  Money market instruments 
B)  Bonds 
C)  Cheques 
D)  Stock

Question 7

Complete the following using the terms listed below.
-The ______ sets most policies concerning monetary policy and interest rates.

Accepted Answer

A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers 
A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers

Question 8

Most nations do NOT have a central bank similar to the U.S. Federal Reserve.

Accepted Answer

A) True 
 B)False

Question 9

The discount rate is the rate banks charge one another for short-term loans.

Accepted Answer

A) True 
 B)False

Question 10

Complete the following using the terms listed below.
-As a whole, ______ save more funds than they use.

Accepted Answer

A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers 
A) bonds 
B) commercial banks 
C) NASDAQ 
D) credit unions 
E) financial system
F)call provision
G)insider trading
H)Bank of Canada
I)securities
J)New York Stock Exchange
K)online banking
L)limit order
M)debentures
N)primary market
O)net savers

Question 11

The process used by an insurance company to determine whom to insure and how much to charge is called ______.

Accepted Answer

A)  a premium 
B)  an insuring agreement 
C)  underwriting 
D)  indemnity 
A)  a premium 
B)  an insuring agreement 
C)  underwriting 
D)  indemnity

Question 12

Briefly differentiate between the primary and secondary financial market.

Accepted Answer

Primary markets are financial markets wh

Question 13

Which of the following agencies regulates federally chartered commercial banks?

Accepted Answer

A)  The Federal Reserve 
B)  Federal Comptroller 
C)  The Bank of Canada 
D)  TSX 
A)  The Federal Reserve 
B)  Federal Comptroller 
C)  The Bank of Canada 
D)  TSX

Question 14

Explain the differences between the NYSE and the NASDAQ.

Accepted Answer

Trading on the NYSE takes place face-to-

Question 15

Commercial banks obtain most of their funds from ______.

Accepted Answer

A)  the government 
B)  the sale of securities 
C)  stockholders 
D)  depositors 
A)  the government 
B)  the sale of securities 
C)  stockholders 
D)  depositors

Question 16

The Toronto Stock Exchange (TSX) is a secondary market.

Accepted Answer

A) True 
 B)False

Question 17

M1 consists of currency in circulation and balances in bank checking accounts.

Accepted Answer

A) True 
 B)False

Question 18

Identify borrowers and savers in the financial system.

Accepted Answer

Borrowers and savers are households, bus

Question 19

Any firm can be listed on the Toronto Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 20

The interest rate at which the Bank of Canada makes short-term loans to member banks is called the ______.

Accepted Answer

A)  federal funds rate 
B)  margin rate 
C)  discount rate 
D)  reserve requirement 
A)  federal funds rate 
B)  margin rate 
C)  discount rate 
D)  reserve requirement

Complete the following using the terms listed below. -______ are cooperative financial institutions that are owned by their depositors, all of whom are members.

Which of the following interest rates does the Bank of Canada actually set?

Raising the reserve requirement tends to increase the supply of money, thereby lowering interest rates.

The basic form of corporate ownership is ______.

When evaluating loan applications, banks consider the borrower's ability and willingness to repay the loan.

______ are short-term debt securities issued by governments, financial institutions, and corporations.

Complete the following using the terms listed below. -The ______ sets most policies concerning monetary policy and interest rates.

Most nations do NOT have a central bank similar to the U.S. Federal Reserve.

The discount rate is the rate banks charge one another for short-term loans.

Complete the following using the terms listed below. -As a whole, ______ save more funds than they use.

The process used by an insurance company to determine whom to insure and how much to charge is called ______.

Briefly differentiate between the primary and secondary financial market.

Which of the following agencies regulates federally chartered commercial banks?

Explain the differences between the NYSE and the NASDAQ.

Commercial banks obtain most of their funds from ______.

The Toronto Stock Exchange (TSX) is a secondary market.

M1 consists of currency in circulation and balances in bank checking accounts.

Identify borrowers and savers in the financial system.

Any firm can be listed on the Toronto Stock Exchange.

The interest rate at which the Bank of Canada makes short-term loans to member banks is called the ______.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

Financial Management

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Exam 16: The Financial System

Complete the following using the terms listed below. -______ are cooperative financial institutions that are owned by their depositors, all of whom are members.

Which of the following interest rates does the Bank of Canada actually set?

Raising the reserve requirement tends to increase the supply of money, thereby lowering interest rates.

The basic form of corporate ownership is ______.

When evaluating loan applications, banks consider the borrower's ability and willingness to repay the loan.

______ are short-term debt securities issued by governments, financial institutions, and corporations.

Complete the following using the terms listed below. -The ______ sets most policies concerning monetary policy and interest rates.

Most nations do NOT have a central bank similar to the U.S. Federal Reserve.

The discount rate is the rate banks charge one another for short-term loans.

Complete the following using the terms listed below. -As a whole, ______ save more funds than they use.

The process used by an insurance company to determine whom to insure and how much to charge is called ______.

Briefly differentiate between the primary and secondary financial market.

Which of the following agencies regulates federally chartered commercial banks?

Explain the differences between the NYSE and the NASDAQ.

Commercial banks obtain most of their funds from ______.

The Toronto Stock Exchange (TSX) is a secondary market.

M1 consists of currency in circulation and balances in bank checking accounts.

Identify borrowers and savers in the financial system.

Any firm can be listed on the Toronto Stock Exchange.

The interest rate at which the Bank of Canada makes short-term loans to member banks is called the ______.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

Financial Management

Filters