Exam 16: The Financial System

Complete the following using the terms listed below. -The ______ is sometimes referred to as the Big Board, the most famous and one of the oldest stock markets in the world, having been founded in 1792.

The Canadian government sells what type of bonds?

What regulates the securities market?

The price of a bond is affected by its interest rate.

______ is equipped with an experienced team and a dedicated surveillance facility with advanced technology. It also, monitors company news, stock charts, and chat room activity to detect volume and price anomalies.

In Canada, the 28 domestic banks and other foreign-based financial institutions manage assets of more than $4.0 trillion.

Securities are sold to the investing public in two ways: in open auctions and through investment bankers.

Which of the following is a depository financial institution?

The ______ is a collection of financial markets in which previously issued securities are traded among investors.

Financial markets are where securities are issued and traded.

Funds can be transferred between savers and users in two ways: ______.

Complete the following using the terms listed below. -A(n) ______ allows the issuer to redeem the bond before its maturity at a specified price.

Other things being equal, the higher the interest rate, the ______ the price of a bond.

Describe financial institutions and mention the two main types discussed in the chapter.

Canada's growing ______ has led to an increase in other banking models.

Securities are issued and traded in the ______.

All of the following are types of securities EXCEPT ______.

Bonds vary considerably in terms of risk. One tool used by bond investors to assess the risk of a bond is its so-called risk rating.

Describe the role of the Bank of Canada.

All of the following statements are correct EXCEPT ______.