Exam 16: The Financial System

In the long run, stock prices tend to follow a company's revenues.

Credit union deposits are insured by private insurance companies.

Complete the following using the terms listed below. -The financial market where firms and governments issue securities and sell them initially to the general public is called the ______.

Preferred shareholders receive fixed dividends.

______ are short-term securities issued by the Canadian Treasury and backed by the full faith and credit of the Canadian government.

______ is a form of short-term financing sold by corporations, such as Salton Brands, that mature from 1 to 270 days after the date of issue.

Only ______ of the 50 largest banks in the world are Canadian.

A direct transfer means that the user raises the needed funds from an intermediary institution.

Which of the following is a nondepository financial institution?

Bonds with ratings of BB and below are classified as speculative, or so-called junk, bonds.

All trading on NASDAQ takes place through its intranet, NOT on a trading floor.

If the Bank of Canada pushes interest rates lower, policymakers at other nations' central banks will most likely ______.

Deposit insurance shifts most of the financial risk of bank failures from depositors to ______.

Briefly explain the difference between a market order and a limit order.

Out of the 50 largest banks in the world, ______ are Canadian banks.

One of the Bank of Canada's most important responsibilities is to help facilitate the clearing of cheques.

Explain the key players in the regulation of the Canadian financial system.

In Canada, ______ are generally net savers.

Securities are also called ______.

The difference between what you own and what you owe is called ______.