BUS 111 Final Exam 2024 QUESTIONS
AND ANSWERS 100% CORRECT;Wilfrid
Laurier University
1. Chartered Banks
2. Alternate Banks
3. Specialized Lending
4. Investment Dealers - ANSWER-4 Pillars of Canadian
Financial System
Largest
Serves individuals and businesses
expands money supply
primary lending source - ANSWER-Chartered banks
trust companies and credit unions
make deposits/borrow
primary lending source - ANSWER-Alternate banks
,insurance companies
private equity financing - ANSWER-Specialized lending
facilitates trae of stocks and bonds
primary markets: investment bankers
secondary: TO stock exchange
large and established - ANSWER-Investment dealers
changes in consumer demands
competition from foreign banks - ANSWER-Changes in
banking
Canadas central bank
manages money supply and economy
Tools: open market operations and bank rate - ANSWER-
Bank of Canada and tools
frequently borrow
stability - ANSWER-International banking and finance
,provides limited services
funds national improvements - ANSWER-World bank
stability exchange rates
international payments
member cooperation - ANSWER-Internation monetary
fund
Debt that is issued by a business or government
legally binding - must be paid
fixed end date - ANSWER-Bonds
Secured vs. unsecured
Registered vs. bearer bonds
Callable
Convertible
Serial - ANSWER-Types of bonds
At issuance: Interest rates, quality of issuer, features
, When traded: Coupon rate and interest rates,
Market/economic risk, inflation - ANSWER-What
determines a bonds value
Our return on investment - ANSWER-Yield
((coupon rate x face value) + (face value - price paid /
time to maturity)) / price paid - ANSWER-Approximate
Yield to Maturity
Premium: Pay more than face value
Discount: Pay less than face value
at Par: Pay face value - ANSWER-Bond prices
Issuer, coupon, maturity date, price, yield - ANSWER-
Bond Quotation
Voting rights
No fixed term
Variable return
Discretionary Payment - ANSWER-Common Stock
AND ANSWERS 100% CORRECT;Wilfrid
Laurier University
1. Chartered Banks
2. Alternate Banks
3. Specialized Lending
4. Investment Dealers - ANSWER-4 Pillars of Canadian
Financial System
Largest
Serves individuals and businesses
expands money supply
primary lending source - ANSWER-Chartered banks
trust companies and credit unions
make deposits/borrow
primary lending source - ANSWER-Alternate banks
,insurance companies
private equity financing - ANSWER-Specialized lending
facilitates trae of stocks and bonds
primary markets: investment bankers
secondary: TO stock exchange
large and established - ANSWER-Investment dealers
changes in consumer demands
competition from foreign banks - ANSWER-Changes in
banking
Canadas central bank
manages money supply and economy
Tools: open market operations and bank rate - ANSWER-
Bank of Canada and tools
frequently borrow
stability - ANSWER-International banking and finance
,provides limited services
funds national improvements - ANSWER-World bank
stability exchange rates
international payments
member cooperation - ANSWER-Internation monetary
fund
Debt that is issued by a business or government
legally binding - must be paid
fixed end date - ANSWER-Bonds
Secured vs. unsecured
Registered vs. bearer bonds
Callable
Convertible
Serial - ANSWER-Types of bonds
At issuance: Interest rates, quality of issuer, features
, When traded: Coupon rate and interest rates,
Market/economic risk, inflation - ANSWER-What
determines a bonds value
Our return on investment - ANSWER-Yield
((coupon rate x face value) + (face value - price paid /
time to maturity)) / price paid - ANSWER-Approximate
Yield to Maturity
Premium: Pay more than face value
Discount: Pay less than face value
at Par: Pay face value - ANSWER-Bond prices
Issuer, coupon, maturity date, price, yield - ANSWER-
Bond Quotation
Voting rights
No fixed term
Variable return
Discretionary Payment - ANSWER-Common Stock
