the economics of money, banking, and financial markets

345 #

© 2014 Pearson Canada Inc.#

12.4 Securities Market Operations

1. 
   

   Who assists in the initial sale of securities in the primary market?
   A) The Bank of Canada
   B) Business finance companies
   C) Securities brokers
   D) Investment banks
   Answer: D
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets

   
   


2. 
   

   Securities brokers and dealers, investment banks, and organized exchanges ____.
   A) do not perform the intermediation function
   B) can be thought of as "financial facilitators"
   C) are important in the process of channelling funds from savers to spenders
   D) All of the above
   Answer: D
   Diff: 3 Type: MC Page Ref: 282 - 283
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets

   
   


3. 
   

   Who assists in the initial sale of securities in the secondary market?
   A) The Bank of Canada
   B) Securities brokers
   C) Business finance companies
   D) Investment banks
   Answer: B
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets

   
   


4. 
   

   When a firm issuing new securities has previously issued securities, these previously issued
   securities are called ____.
   A) investment-grade issues
   B) seasoned issues
   C) an initial public offering
   D) secondary issues
   Answer: B
   Diff: 1 Type: MC Page Ref: 282
   Skill: Recall
   Objective List: 12.4 Understanding the operation of securities markets