the economics of money, banking, and financial markets

353 #

© 2014 Pearson Canada Inc.#

9. 
   

   Sovereign wealth funds can be a concern because they ____.
   A) could cause market instability
   B) raise national security issues
   C) are secretive
   D) All of the above
   Answer: A
   Diff: 1 Type: MC Page Ref: 284
   Skill: Recall
   Objective List: 12.5 Examine the key aspects of mutual funds

   
   


10. 
    

    Mutual funds are regulated by ____.
    A) individual provinces
    B) the federal government
    C) the Mutual Fund Dealers Association of Canada
    D) All of the above
    Answer: A
    Diff: 1 Type: MC Page Ref: 284
    Skill: Recall
    Objective List: 12.5 Examine the key aspects of mutual funds

    
    


11. 
    

    Money-market mutual funds invest in ____.
    A) stocks
    B) bonds
    C) short-term debt
    D) short and long-term debt
    Answer: C
    Diff: 1 Type: MC Page Ref: 285
    Skill: Recall
    Objective List: 12.5 Examine the key aspects of mutual funds

    
    


12. 
    

    How do sovereign wealth funds raise national security issues?
    Answer: Sovereign wealth funds raise national security issues, because they might use their
    investments for political purposes. They might buy up strategically important industries or use
    their clout to get political concessions. This is a particular concern, because the governments of
    Russia, China and Arab countries control many of the largest of these funds.
    Diff: 3 Type: SA Page Ref: 285
    Skill: Applied
    Objective List: 12.5 Examine the key aspects of mutual funds