Exam 1: An Introduction to Finance

A) $901 billion
B) $51 billion
C) $2,293 billion
D) There is not enough information to answer the question.

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"Over-the-counter" means a large network...

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A) pooling sums of money to make investments
B) paying out premiums to their clients
C) providing professional management expertise
D) acting as a "pass-through" for individuals to invest in the equity and debt markets

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The third market is an OTC market for th...

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A) exchanges are a part of the primary market, while dealer and OTC markets are part of the secondary market.
B) transactions in dealer markets are conducted entirely by humans, not electronically.
C) exchanges have a physical location while dealer and OTC markets do not.
D) All of the above are differences between exchanges and dealer markets.

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A) based on only the current skills, but not the education, of a country's citizens.
B) based on only the education, but not the current skills, of a country's citizens.
C) based on the skills and education of citizens and should be included in a country's wealth.
D) difficult to measure and should therefore not be included in a country's wealth.

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A) Real assets are tangible and financial assets are intangible.
B) Real assets have known values, while the values of financial assets are not known.
C) Real assets are intangible and financial assets are tangible.
D) Real assets have unknown values, while the values of financial assets are known.

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A) been increasing recently, as shown by the merger of the NYSE and Euronext.
B) been decreasing recently, as shown by the decrease in multi-listed stocks.
C) led to lower risk in investments because markets have become less interdependent.
D) led to increased reliance on human interactions in securities trading.

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A) mistrust between financial intermediaries
B) illiquidity of debt markets
C) the arrest of Bernard Madoff
D) bankruptcy of one of the leading financial institutions

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A) non-residential structures
B) net worth or equity
C) net foreign liabilities
D) net foreign assets

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A) They represent important sources of funds for borrowers.
B) They provide diversification benefits to Canadian investors.
C) Canadian companies can list their shares in different markets.
D) The value of Canadian shares becomes more stable.

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A) bond market and money market.
B) money market and capital market.
C) bond market and foreign-exchange market.
D) commodity market and capital market.

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A) demand deposit.
B) T-bill.
C) commercial paper.
D) common share.

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A) business sector
B) household sector
C) government sector
D) banking sector

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Stock exchanges are auction markets.Brok...

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A) brokers.
B) financial intermediaries.
C) dealers.
D) market intermediaries.

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A) T-bills and Canada Savings Bonds
B) T-bills, traditional bonds, and Canada Savings Bonds
C) T-bills, equity, and traditional bonds
D) traditional bonds and Canada Savings Bonds

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A) maturity
B) repayment
C) dividends
D) interest payments

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