Question 1

Money market instruments are generally high-risk securities and are purchased by investors when they are in need of a quick resell.

Accepted Answer

A) True 
 B)False

Question 2

The global financial institutions, including HBSC, Citigroup, and Lloyds Bank, have seen their assets grow at an annual rate of more than 20 percent in this emerging market.

Accepted Answer

A) True 
 B)False

Question 3

Financial markets are regulated by ______.

Accepted Answer

A)  the TSX 
B)  professional associations 
C)  the major financial markets 
D)  all of the above 
A)  the TSX 
B)  professional associations 
C)  the major financial markets 
D)  all of the above

Question 4

The ______ handles four to five times the dollar value of securities that are handled in the primary market.

Accepted Answer

A)  primary market 
B)  secondary market 
C)  financial market 
D)  Canadian market 
A)  primary market 
B)  secondary market 
C)  financial market 
D)  Canadian market

Question 5

Bonds with the highest level of risk are rated AAA.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?

Accepted Answer

A)  the Bank of Canada buying government securities 
B)  the Bank of Canada raising the margin requirement 
C)  the Bank of Canada raising the reserve requirement 
D)  the Bank of Canada raising the discount rate 
A)  the Bank of Canada buying government securities 
B)  the Bank of Canada raising the margin requirement 
C)  the Bank of Canada raising the reserve requirement 
D)  the Bank of Canada raising the discount rate

Question 7

CDs with denominations of $1,000,000 or less per depositor are federally insured.

Accepted Answer

A) True 
 B)False

Question 8

One of the largest stock exchange outside the United States is the ______.

Accepted Answer

A)  London stock exchange 
B)  New York Stock Exchange (NYS
E)  
C)  Canadian Stock Exchange (TSX) 
D)  Hong Kong Stock Exchange 
A)  London stock exchange 
B)  New York Stock Exchange (NYS
E)  
C)  Canadian Stock Exchange (TSX) 
D)  Hong Kong Stock Exchange

Question 9

An indirect transfer of funds is through financial institutions-for example, through a commercial bank such as TD Canada Trust or Scotiabank.

Accepted Answer

A) True 
 B)False

Question 10

Describe the global financial environment.

Accepted Answer

Major Canadian banks have extensive inte

Question 11

Selling government securities reduces bank reserves and slows down the economy.

Accepted Answer

A) True 
 B)False

Question 12

Complete the following using the terms listed below.
-By selling ______, a firm obtains long-term debt capital.

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 13

The chairman of the Bank of Canada can accelerate economic activity by lowering interest rates. What primary method does the Bank of Canada use to accomplish this?

Accepted Answer

A)  open market operations 
B)  increasing the discount rate 
C)  increasing reserve requirements 
D)  selling margin requirements 
A)  open market operations 
B)  increasing the discount rate 
C)  increasing reserve requirements 
D)  selling margin requirements

Question 14

______ is defined as the use of material non-public information about a company to make investment profits.

Accepted Answer

A)  Insider trading 
B)  Outsider trading 
C)  Cheating 
D)  Poor regulation 
A)  Insider trading 
B)  Outsider trading 
C)  Cheating 
D)  Poor regulation

Question 15

What are the main reasons why investors purchase common shares?

Accepted Answer

Investors purchase common shares for two

Question 16

Explain how the fourth market has begun to open up to smaller, individual investors.

Accepted Answer

The fourth market has opened up to small

Question 17

When the Bank of Canada sells government securities, banks have ______ money to lend and economic growth ______.

Accepted Answer

A)  less; will slow 
B)  less; will accelerate 
C)  more; will slow 
D)  more; will accelerate 
A)  less; will slow 
B)  less; will accelerate 
C)  more; will slow 
D)  more; will accelerate

Question 18

Treasury bills have a minimum denomination of $1,000.

Accepted Answer

A) True 
 B)False

Question 19

Municipal bonds are bonds issued by the federal government.

Accepted Answer

A) True 
 B)False

Question 20

Explain how saving changes as one ages.

Accepted Answer

People often transition from net borrowe

Money market instruments are generally high-risk securities and are purchased by investors when they are in need of a quick resell.

The global financial institutions, including HBSC, Citigroup, and Lloyds Bank, have seen their assets grow at an annual rate of more than 20 percent in this emerging market.

Financial markets are regulated by ______.

The ______ handles four to five times the dollar value of securities that are handled in the primary market.

Bonds with the highest level of risk are rated AAA.

Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?

CDs with denominations of $1,000,000 or less per depositor are federally insured.

One of the largest stock exchange outside the United States is the ______.

An indirect transfer of funds is through financial institutions-for example, through a commercial bank such as TD Canada Trust or Scotiabank.

Describe the global financial environment.

Selling government securities reduces bank reserves and slows down the economy.

Complete the following using the terms listed below. -By selling ______, a firm obtains long-term debt capital.

The chairman of the Bank of Canada can accelerate economic activity by lowering interest rates. What primary method does the Bank of Canada use to accomplish this?

______ is defined as the use of material non-public information about a company to make investment profits.

What are the main reasons why investors purchase common shares?

Explain how the fourth market has begun to open up to smaller, individual investors.

When the Bank of Canada sells government securities, banks have money to lend and economic growth .

Treasury bills have a minimum denomination of $1,000.

Municipal bonds are bonds issued by the federal government.

Explain how saving changes as one ages.

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

Money market instruments are generally high-risk securities and are purchased by investors when they are in need of a quick resell.

The global financial institutions, including HBSC, Citigroup, and Lloyds Bank, have seen their assets grow at an annual rate of more than 20 percent in this emerging market.

Financial markets are regulated by ______.

The ______ handles four to five times the dollar value of securities that are handled in the primary market.

Bonds with the highest level of risk are rated AAA.

Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?

CDs with denominations of $1,000,000 or less per depositor are federally insured.

One of the largest stock exchange outside the United States is the ______.

An indirect transfer of funds is through financial institutions-for example, through a commercial bank such as TD Canada Trust or Scotiabank.

Describe the global financial environment.

Selling government securities reduces bank reserves and slows down the economy.

Complete the following using the terms listed below. -By selling ______, a firm obtains long-term debt capital.

The chairman of the Bank of Canada can accelerate economic activity by lowering interest rates. What primary method does the Bank of Canada use to accomplish this?

______ is defined as the use of material non-public information about a company to make investment profits.

What are the main reasons why investors purchase common shares?

Explain how the fourth market has begun to open up to smaller, individual investors.

When the Bank of Canada sells government securities, banks have ______ money to lend and economic growth ______.

Treasury bills have a minimum denomination of $1,000.

Municipal bonds are bonds issued by the federal government.

Explain how saving changes as one ages.

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

When the Bank of Canada sells government securities, banks have money to lend and economic growth .