Question 1

The treasury sells bonds that mature in 2, 5, 10, and 30 years from the date of issue.

Accepted Answer

A) True 
 B)False

Question 2

Both for-profit corporations and government agencies rely on primary markets to raise funds by issuing bonds.

Accepted Answer

A) True 
 B)False

Question 3

______, once privately owned, became a government-owned Crown Corporation in 1938.

Accepted Answer

A)  Canadian Imperial Bank of Canada (CIB
C)  
B)  Bank of Canada (BO
C)  
C)  Toronto Dominion Bank (TD Bank) 
D)  Royal Bank of Canada (RB
C)  
A)  Canadian Imperial Bank of Canada (CIB
C)  
B)  Bank of Canada (BO
C)  
C)  Toronto Dominion Bank (TD Bank) 
D)  Royal Bank of Canada (RB
C)

Question 4

According to a recent survey, ______ were the highest users of Internet banking.

Accepted Answer

A)  Canadians 
B)  Americans 
C)  Germans 
D)  the Swiss 
A)  Canadians 
B)  Americans 
C)  Germans 
D)  the Swiss

Question 5

______ are the basic form of corporate ownership.

Accepted Answer

A)  Common shares 
B)  Treasury bills 
C)  Bonds 
D)  Debentures 
A)  Common shares 
B)  Treasury bills 
C)  Bonds 
D)  Debentures

Question 6

Which of the following stock exchanges is the most international of all stock markets?

Accepted Answer

A)  New York Stock Exchange (NYS
E)  
B)  Toronto Stock Exchange (TSX) 
C)  London Stock Exchange 
D)  National Association of Securities Dealers Automated Quotation System (NASDAQ) 
A)  New York Stock Exchange (NYS
E)  
B)  Toronto Stock Exchange (TSX) 
C)  London Stock Exchange 
D)  National Association of Securities Dealers Automated Quotation System (NASDAQ)

Question 7

Purchasers of preferred shares are the true owners of a corporation.

Accepted Answer

A) True 
 B)False

Question 8

In ______, buyers and sellers meet in a virtual stock market and trade directly with one another.

Accepted Answer

A)  electronic communications networks 
B)  the Tokyo Stock Exchange 
C)  the NASDAQ stock market 
D)  online communications networks 
A)  electronic communications networks 
B)  the Tokyo Stock Exchange 
C)  the NASDAQ stock market 
D)  online communications networks

Question 9

Junk bonds pay about 70 percent more in interest than do investment-grade corporate bonds.

Accepted Answer

A) True 
 B)False

Question 10

Jeff wants to purchase a low-risk bond. Therefore, he should buy a government bond.

Accepted Answer

A) True 
 B)False

Question 11

How could the central bank use interest rates to stimulate or slow down the economy?

Accepted Answer

In periods of economic down turn, the ba

Question 12

Commercial paper is securities sold by corporations, such as General Electric, that mature from 1 to 270 months from the date of issue.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following financial institutions would invest the greatest percentage of its assets in common stocks and other long-term investments?

Accepted Answer

A)  commercial bank 
B)  property and liability insurance company 
C)  credit union 
D)  pension fund 
A)  commercial bank 
B)  property and liability insurance company 
C)  credit union 
D)  pension fund

Question 14

Corporate bonds are traded on the Toronto Stock Exchange (TSX), but bond trading is more than 1 percent of the total value of securities traded on the TSX during a typical year.

Accepted Answer

A) True 
 B)False

Question 15

Do other countries have organizations that play roles similar as those played by the Bank of Canada?

Accepted Answer

Yes, almost all nations have central ban

Question 16

The market value of a share is the price at which the stock is currently selling.

Accepted Answer

A) True 
 B)False

Question 17

Bondholders are creditors, therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy, reorganization, or liquidation.

Accepted Answer

A) True 
 B)False

Question 18

Complete the following using the terms listed below.
-______ allow customers to conduct some or all of their banking on the Internet.

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 19

Which of the following policy tools does the Bank of Canada use most frequently?

Accepted Answer

A)  changes to the discount rate 
B)  changes to the reserve requirement 
C)  changes to margin requirements 
D)  open market operations 
A)  changes to the discount rate 
B)  changes to the reserve requirement 
C)  changes to margin requirements 
D)  open market operations

Question 20

When a company needs capital to purchase inventory, expand a plant, make major investments, acquire another firm, or pursue other business goals, it may sell a bond or stock issue to the investing public. This is done in which market?

Accepted Answer

A)  primary market 
B)  secondary market 
C)  government market 
D)  supermarket 
A)  primary market 
B)  secondary market 
C)  government market 
D)  supermarket

The treasury sells bonds that mature in 2, 5, 10, and 30 years from the date of issue.

Both for-profit corporations and government agencies rely on primary markets to raise funds by issuing bonds.

______, once privately owned, became a government-owned Crown Corporation in 1938.

According to a recent survey, ______ were the highest users of Internet banking.

______ are the basic form of corporate ownership.

Which of the following stock exchanges is the most international of all stock markets?

Purchasers of preferred shares are the true owners of a corporation.

In ______, buyers and sellers meet in a virtual stock market and trade directly with one another.

Junk bonds pay about 70 percent more in interest than do investment-grade corporate bonds.

Jeff wants to purchase a low-risk bond. Therefore, he should buy a government bond.

How could the central bank use interest rates to stimulate or slow down the economy?

Commercial paper is securities sold by corporations, such as General Electric, that mature from 1 to 270 months from the date of issue.

Which of the following financial institutions would invest the greatest percentage of its assets in common stocks and other long-term investments?

Corporate bonds are traded on the Toronto Stock Exchange (TSX), but bond trading is more than 1 percent of the total value of securities traded on the TSX during a typical year.

Do other countries have organizations that play roles similar as those played by the Bank of Canada?

The market value of a share is the price at which the stock is currently selling.

Bondholders are creditors, therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy, reorganization, or liquidation.

Complete the following using the terms listed below. -______ allow customers to conduct some or all of their banking on the Internet.

Which of the following policy tools does the Bank of Canada use most frequently?

When a company needs capital to purchase inventory, expand a plant, make major investments, acquire another firm, or pursue other business goals, it may sell a bond or stock issue to the investing public. This is done in which market?

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

The treasury sells bonds that mature in 2, 5, 10, and 30 years from the date of issue.

Both for-profit corporations and government agencies rely on primary markets to raise funds by issuing bonds.

______, once privately owned, became a government-owned Crown Corporation in 1938.

According to a recent survey, ______ were the highest users of Internet banking.

______ are the basic form of corporate ownership.

Which of the following stock exchanges is the most international of all stock markets?

Purchasers of preferred shares are the true owners of a corporation.

In ______, buyers and sellers meet in a virtual stock market and trade directly with one another.

Junk bonds pay about 70 percent more in interest than do investment-grade corporate bonds.

Jeff wants to purchase a low-risk bond. Therefore, he should buy a government bond.

How could the central bank use interest rates to stimulate or slow down the economy?

Commercial paper is securities sold by corporations, such as General Electric, that mature from 1 to 270 months from the date of issue.

Which of the following financial institutions would invest the greatest percentage of its assets in common stocks and other long-term investments?

Corporate bonds are traded on the Toronto Stock Exchange (TSX), but bond trading is more than 1 percent of the total value of securities traded on the TSX during a typical year.

Do other countries have organizations that play roles similar as those played by the Bank of Canada?

The market value of a share is the price at which the stock is currently selling.

Bondholders are creditors, therefore they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy, reorganization, or liquidation.

Complete the following using the terms listed below. -______ allow customers to conduct some or all of their banking on the Internet.

Which of the following policy tools does the Bank of Canada use most frequently?

When a company needs capital to purchase inventory, expand a plant, make major investments, acquire another firm, or pursue other business goals, it may sell a bond or stock issue to the investing public. This is done in which market?

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