Question 1

Which of the following are examples of municipal bonds?

Accepted Answer

A)  government bonds 
B)  provincial government bonds issued in Ontario 
C)  secured bonds 
D)  unsecured bonds 
A)  government bonds 
B)  provincial government bonds issued in Ontario 
C)  secured bonds 
D)  unsecured bonds

Question 2

Canadian banks make few foreign investments due to regulatory restrictions.

Accepted Answer

A) True 
 B)False

Question 3

When the Bank of Canada buys government securities, it adds to the supply of money and credit, which causes a reduction in interest rates.

Accepted Answer

A) True 
 B)False

Question 4

Explain insider trader and give examples.

Accepted Answer

Insider trading is defined as the use of

Question 5

In 1992 the Bank of Canada removed the reserve requirement.

Accepted Answer

A) True 
 B)False

Question 6

Treasury bills are units of ownership in public corporations, such as Sun Life Financial, Hudson's Bay, and Bell Canada Enterprises.

Accepted Answer

A) True 
 B)False

Question 7

Mortgage-backed corporate bonds consist of pools of ______, loans purchased from lenders such as chartered banks.

Accepted Answer

A)  low value mortgages 
B)  mortgage loans 
C)  subprime mortgages 
D)  corporate mortgages 
A)  low value mortgages 
B)  mortgage loans 
C)  subprime mortgages 
D)  corporate mortgages

Question 8

The ______ is perhaps the most international of all stock markets.

Accepted Answer

A)  New York Stock Exchange 
B)  Tokyo Stock Exchange 
C)  NASDAQ stock market 
D)  London Stock Exchange 
A)  New York Stock Exchange 
B)  Tokyo Stock Exchange 
C)  NASDAQ stock market 
D)  London Stock Exchange

Question 9

Bonds with ratings of BBB and above are classified as ______.

Accepted Answer

A)  investment-grade bonds 
B)  speculative bond 
C)  junk bonds 
D)  corporate bonds 
A)  investment-grade bonds 
B)  speculative bond 
C)  junk bonds 
D)  corporate bonds

Question 10

The vast majority of funds flow through direct transfers.

Accepted Answer

A) True 
 B)False

Question 11

Differentiate among the different types of bonds.

Accepted Answer

Government bonds are bonds sold by the C

Question 12

Under the Bank Act the federal government is responsible for regulating the banking sector.

Accepted Answer

A) True 
 B)False

Question 13

As market interest rates rise, bond prices fall.

Accepted Answer

A) True 
 B)False

Question 14

Most investors are members of the NYSE, or other stock markets, and therefore they do NOT need to use the services of a brokerage firm to buy or sell stocks.

Accepted Answer

A) True 
 B)False

Question 15

Life insurance companies tend to invest excess funds in short-term securities, while pension funds tend to invest excess funds in long-term securities.

Accepted Answer

A) True 
 B)False

Question 16

Convertible bonds pay lower interest rates than those lacking conversion features.

Accepted Answer

A) True 
 B)False

Question 17

Under the Bank Act, ______ is responsible for regulating the banking sector.

Accepted Answer

A)  the municipal government 
B)  the federal government 
C)  financial minister 
D)  provincial government 
A)  the municipal government 
B)  the federal government 
C)  financial minister 
D)  provincial government

Question 18

The most common type of order is called a ______. It instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.

Accepted Answer

A)  fast order 
B)  stock order 
C)  limit order 
D)  market order 
A)  fast order 
B)  stock order 
C)  limit order 
D)  market order

Question 19

Complete the following using the terms listed below.
-A(n) ______ sets a price ceiling when buying or a price floor when selling.

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 20

Sales of most corporate and municipal securities are made via auctions.

Accepted Answer

A) True 
 B)False

Which of the following are examples of municipal bonds?

Canadian banks make few foreign investments due to regulatory restrictions.

When the Bank of Canada buys government securities, it adds to the supply of money and credit, which causes a reduction in interest rates.

Explain insider trader and give examples.

In 1992 the Bank of Canada removed the reserve requirement.

Treasury bills are units of ownership in public corporations, such as Sun Life Financial, Hudson's Bay, and Bell Canada Enterprises.

Mortgage-backed corporate bonds consist of pools of ______, loans purchased from lenders such as chartered banks.

The ______ is perhaps the most international of all stock markets.

Bonds with ratings of BBB and above are classified as ______.

The vast majority of funds flow through direct transfers.

Differentiate among the different types of bonds.

Under the Bank Act the federal government is responsible for regulating the banking sector.

As market interest rates rise, bond prices fall.

Most investors are members of the NYSE, or other stock markets, and therefore they do NOT need to use the services of a brokerage firm to buy or sell stocks.

Life insurance companies tend to invest excess funds in short-term securities, while pension funds tend to invest excess funds in long-term securities.

Convertible bonds pay lower interest rates than those lacking conversion features.

Under the Bank Act, ______ is responsible for regulating the banking sector.

The most common type of order is called a ______. It instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.

Complete the following using the terms listed below. -A(n) ______ sets a price ceiling when buying or a price floor when selling.

Sales of most corporate and municipal securities are made via auctions.

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

Which of the following are examples of municipal bonds?

Canadian banks make few foreign investments due to regulatory restrictions.

When the Bank of Canada buys government securities, it adds to the supply of money and credit, which causes a reduction in interest rates.

Explain insider trader and give examples.

In 1992 the Bank of Canada removed the reserve requirement.

Treasury bills are units of ownership in public corporations, such as Sun Life Financial, Hudson's Bay, and Bell Canada Enterprises.

Mortgage-backed corporate bonds consist of pools of ______, loans purchased from lenders such as chartered banks.

The ______ is perhaps the most international of all stock markets.

Bonds with ratings of BBB and above are classified as ______.

The vast majority of funds flow through direct transfers.

Differentiate among the different types of bonds.

Under the Bank Act the federal government is responsible for regulating the banking sector.

As market interest rates rise, bond prices fall.

Most investors are members of the NYSE, or other stock markets, and therefore they do NOT need to use the services of a brokerage firm to buy or sell stocks.

Life insurance companies tend to invest excess funds in short-term securities, while pension funds tend to invest excess funds in long-term securities.

Convertible bonds pay lower interest rates than those lacking conversion features.

Under the Bank Act, ______ is responsible for regulating the banking sector.

The most common type of order is called a ______. It instructs the broker to obtain the best possible price-the highest price when selling and the lowest price when buying.

Complete the following using the terms listed below. -A(n) ______ sets a price ceiling when buying or a price floor when selling.

Sales of most corporate and municipal securities are made via auctions.

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