the economics of money, banking, and financial markets

357 #

© 2014 Pearson Canada Inc.#

4. 
   

   To stimulate the export of Canadian goods and services, the government established
   ____.
   A) Export Canada
   B) Export Credit Canada
   C) Export Development Canada
   D) Canada Export Corporation
   Answer: C
   Diff: 1 Type: MC Page Ref: 288
   Skill: Recall
   Objective List: 12.8 Understanding government financial intermediation

   
   


5. 
   

   To promote and assist in the establishment of business enterprises in Canada, the government
   created ____.
   A) the stock market
   B) the bond market
   C) the Business Development Bank
   D) the Bank of Canada
   Answer: C
   Diff: 1 Type: MC Page Ref: 288
   Skill: Recall
   Objective List: 12.8 Understanding government financial intermediation

   
   


6. 
   

   CMHC provides funds to the mortgage market by ____.
   A) borrowing from the federal government
   B) selling shares in CMHC
   C) issuing mortgage-backed securities
   D) borrowing from the Bank of Canada
   Answer: A
   Diff: 2 Type: MC Page Ref: 288
   Skill: Recall
   Objective List: 12.8 Understanding government financial intermediation

   
   


7. 
   

   Farm Credit Canada sources its funds from ____.
   A) the federal government
   B) selling shares in domestic capital markets
   C) selling its shares in foreign capital markets
   D) the Bank of Canada
   Answer: A
   Diff: 2 Type: MC Page Ref: 288
   Skill: Recall
   Objective List: 12.8 Understanding government financial intermediation