Question 49(1 point)

Which of the following bonds would you expect to pay the highest interest rate?

Question 49 options:

a)

a bond issued by the federal government

b)

a bond issued by Bombardier

c)

a bond issued by Manitoba

d)

a bond issued by a new restaurant chain

Question 50(1 point)

What do people who buy newly issued stock in a corporation such as Rockwood Pottery Ltd. provide?

Question 50 options:

a)

They provide debt finance and so become part owners of Rockwood.

b)

They provide debt finance and so become creditors of Rockwood.

c)

They provide equity finance and so become part owners of Rockwood.

d)

They provide equity finance and so become creditors of Rockwood.

Question 51(1 point)

Which of the following best defines financial intermediaries?

Question 51 options:

a)

They are the same as financial markets.

b)

They are individuals who make a profit by buying a stock low and selling it high.

c)

They are a more general name for financial assets, such as stocks, bonds, and chequing accounts.

d)

They are financial institutions through which savers can indirectly provide funds to borrowers.

Question 52(1 point)

Which of the following is the primary advantage of mutual funds?

Question 52 options:

a)

They usually make a return that "beats the market."

b)

They allow people with small amounts of money to diversify.

c)

They provide customers with a medium of exchange.

d)

They allow investing in venture companies.

Question 53(1 point)

In a closed economy, what does (T - G) represent?

Question 53 options:

a)

national saving

b)

investment

c)

private saving

d)

public saving

Question 54(1 point)

Which of the following would a macroeconomist consider as investment?

Question 54 options:

a)

Ernest purchases a bond issued by Tim Hortons.

b)

Jerry purchases stock issued by BCE.

c)

Alice builds a new restaurant.

d)

Brenda buys an amount of gold.

Question 55(1 point)

What does a higher interest rate induce households to do?

Question 55 options:

a)

save more, so the supply of loanable funds slopes upward

b)

save less, so the supply of loanable funds slopes downward

c)

invest more, so the supply of loanable funds slopes upward

d)

invest less, so the supply of loanable funds slopes downward