Question 1

Secured bonds are backed by a specific pledge of company assets.

Accepted Answer

A) True 
 B)False

Question 2

Securities represent obligations on the part of issuers-businesses and governments-to provide purchasers with expected or stated returns on the funds invested or loaned.

Accepted Answer

A) True 
 B)False

Question 3

Explain how banks operate.

Accepted Answer

Banks raise funds by offering

Question 4

Which of the following financial institutions is organized as a not-for-profit cooperative?

Accepted Answer

A)  commercial bank 
B)  savings bank 
C)  life insurance company 
D)  credit union 
A)  commercial bank 
B)  savings bank 
C)  life insurance company 
D)  credit union

Question 5

If the money supply grows too rapidly, inflationary pressures will begin to build.

Accepted Answer

A) True 
 B)False

Question 6

What is the Bank of Canada's most important function? How does this function affect the nation's rate of inflation and employment?

Accepted Answer

The Bank of Canada's most important func

Question 7

Open market operations is the buying and selling of government securities to increase or decrease bank reserves.

Accepted Answer

A) True 
 B)False

Question 8

A ______ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union.

Accepted Answer

A)  commercial paper 
B)  CD 
C)  Treasury bill 
D)  bond 
A)  commercial paper 
B)  CD 
C)  Treasury bill 
D)  bond

Question 9

Briefly differentiate commercial banks and credit unions.

Accepted Answer

Commercial banks and credit unions in re

Question 10

If the Bank of Canada reduced reserve requirements, ______.

Accepted Answer

A)  banks would have less money to lend businesses and consumers 
B)  interest rates would fall 
C)  inflation would decline 
D)  economic growth would decline 
A)  banks would have less money to lend businesses and consumers 
B)  interest rates would fall 
C)  inflation would decline 
D)  economic growth would decline

Question 11

Virtually all developed countries and many developing countries have stock exchanges.

Accepted Answer

A) True 
 B)False

Question 12

M1 is a measure of monetary supply which consists of all balances in ______.

Accepted Answer

A)  mutual funds 
B)  chequing accounts 
C)  investments 
D)  nondepository institutions 
A)  mutual funds 
B)  chequing accounts 
C)  investments 
D)  nondepository institutions

Question 13

M2 includes ______ M1.

Accepted Answer

A)  all of 
B)  none of 
C)  some of 
A)  all of 
B)  none of 
C)  some of

Question 14

Mortgage-backed corporate bonds are relatively safe, even when loans are made to borrowers with poor credit ratings.

Accepted Answer

A) True 
 B)False

Question 15

Regulation of the Canadian financial markets is primarily a function of the federal government.

Accepted Answer

A) True 
 B)False

Question 16

Sean made a purchase at his local Walmart. Instead of writing a cheque, Sean used a card issued by his bank with a Visa logo on the front. He entered his PIN and the purchase was automatically deducted from his chequing account. Sean used his ______ card.

Accepted Answer

A)  debit 
B)  credit 
C)  ATM 
D)  point-of-sale 
A)  debit 
B)  credit 
C)  ATM 
D)  point-of-sale

Question 17

The credit crisis came about because of subprime mortgages.

Accepted Answer

A) True 
 B)False

Question 18

The two largest stock markets in the world are the ______ and the ______.

Accepted Answer

A)  New York Stock Exchange; SP 500 
B)  Tokyo Stock Exchange; New York Stock Exchange 
C)  New York Stock Exchange; NASDAQ stock market 
D)  Tokyo Stock Exchange; London Stock Exchange 
A)  New York Stock Exchange; SP 500 
B)  Tokyo Stock Exchange; New York Stock Exchange 
C)  New York Stock Exchange; NASDAQ stock market 
D)  Tokyo Stock Exchange; London Stock Exchange

Question 19

Describe stock markets and identify two well-known stock markets.

Accepted Answer

Stock markets or exchanges are markets w

Question 20

Two factors determine the price of a bond: ______ and ______.

Accepted Answer

A)  market; risk 
B)  risk; interest rate 
C)  interest rate; discount rate 
D)  price of other bonds; the company selling the bond 
A)  market; risk 
B)  risk; interest rate 
C)  interest rate; discount rate 
D)  price of other bonds; the company selling the bond

Secured bonds are backed by a specific pledge of company assets.

Securities represent obligations on the part of issuers-businesses and governments-to provide purchasers with expected or stated returns on the funds invested or loaned.

Explain how banks operate.

Which of the following financial institutions is organized as a not-for-profit cooperative?

If the money supply grows too rapidly, inflationary pressures will begin to build.

What is the Bank of Canada's most important function? How does this function affect the nation's rate of inflation and employment?

Open market operations is the buying and selling of government securities to increase or decrease bank reserves.

A ______ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union.

Briefly differentiate commercial banks and credit unions.

If the Bank of Canada reduced reserve requirements, ______.

Virtually all developed countries and many developing countries have stock exchanges.

M1 is a measure of monetary supply which consists of all balances in ______.

M2 includes ______ M1.

Mortgage-backed corporate bonds are relatively safe, even when loans are made to borrowers with poor credit ratings.

Regulation of the Canadian financial markets is primarily a function of the federal government.

Sean made a purchase at his local Walmart. Instead of writing a cheque, Sean used a card issued by his bank with a Visa logo on the front. He entered his PIN and the purchase was automatically deducted from his chequing account. Sean used his ______ card.

The credit crisis came about because of subprime mortgages.

The two largest stock markets in the world are the and the .

Describe stock markets and identify two well-known stock markets.

Two factors determine the price of a bond: and .

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

Exam 16: The Financial System

Secured bonds are backed by a specific pledge of company assets.

Securities represent obligations on the part of issuers-businesses and governments-to provide purchasers with expected or stated returns on the funds invested or loaned.

Explain how banks operate.

Which of the following financial institutions is organized as a not-for-profit cooperative?

If the money supply grows too rapidly, inflationary pressures will begin to build.

What is the Bank of Canada's most important function? How does this function affect the nation's rate of inflation and employment?

Open market operations is the buying and selling of government securities to increase or decrease bank reserves.

A ______ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union.

Briefly differentiate commercial banks and credit unions.

If the Bank of Canada reduced reserve requirements, ______.

Virtually all developed countries and many developing countries have stock exchanges.

M1 is a measure of monetary supply which consists of all balances in ______.

M2 includes ______ M1.

Mortgage-backed corporate bonds are relatively safe, even when loans are made to borrowers with poor credit ratings.

Regulation of the Canadian financial markets is primarily a function of the federal government.

Sean made a purchase at his local Walmart. Instead of writing a cheque, Sean used a card issued by his bank with a Visa logo on the front. He entered his PIN and the purchase was automatically deducted from his chequing account. Sean used his ______ card.

The credit crisis came about because of subprime mortgages.

The two largest stock markets in the world are the ______ and the ______.

Describe stock markets and identify two well-known stock markets.

Two factors determine the price of a bond: ______ and ______.

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

The two largest stock markets in the world are the and the .

Two factors determine the price of a bond: and .