the economics of money, banking, and financial markets

348 #

© 2014 Pearson Canada Inc.#

13. 
    

    Investment bankers that guarantee the corporation a price on the securities and then sell them
    to the public are known as ____.
    A) undertakers
    B) securities brokers
    C) underwriters
    D) central bankers
    Answer: C
    Diff: 1 Type: MC Page Ref: 282
    Skill: Recall
    Objective List: 12.4 Understanding the operation of securities markets

    
    


14. 
    

    An investment bank helps ____ issue securities.
    A) a corporation
    B) the Canadian government
    C) the OSC
    D) foreign governments
    Answer: A
    Diff: 1 Type: MC Page Ref: 282
    Skill: Recall
    Objective List: 12.4 Understanding the operation of securities markets

    
    


15. 
    

    Which of the following transactions would involve an investment bank?
    A) New shares of stock are issued by a corporation.
    B) One corporation selling shares of another corporation.
    C) A pension fund manager buys a bond in the secondary market.
    D) An investor buying shares on the TSX.
    Answer: A
    Diff: 2 Type: MC Page Ref: 282
    Skill: Recall
    Objective List: 12.4 Understanding the operation of securities markets

    
    

1 6) A financial institution that assists in the sale of securities in the primary market is the
____.
A) investment bank
B) commercial bank
C) stock exchange
D) brokerage house
Answer: A
Diff: 1 Type: MC Page Ref: 282
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets