Bus Concepts 3

In the Canadian financial system, which of the following is a net saver?

• The Government

• Business

• Households

• Financial Institutions

Zachary buys a Canada savings bond. This is an example of funds being transferred from a saver to a user ________.

• through the financial markets

• through a financial institution

• directly

• through the government

The difference between what you own and what you owe is called_____.

• gross worth

• net worth

• net value

• debt factor

Securities are also called_____.

• cash

• savings accounts

• financial instruments

• financial insitutions

___ are short-term securities issued by the Canadian Treasury and backed by the full faith and credit of the Canadian government.

• Bonds

• CDs

• Commercial paper

• Treasury Bills

Treasury bills have a minimum denomination of ____.

• $100,000

• $1000

• $10,000

• $100

_____ is a form of short-term financing sold by corporations, such as Salton Brands, that mature from 1 to 270 days after the date of issue.

• Commercial Paper

• CD's

• Treasury bills

• Bonds

A _____ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union.

• commercial paper

• Certificate of deposit (CD)

• Treasury Bill

• Bond

_____are creditors of a corporation or government body.

• Commercial paper holders

• CD holders

• Treasury Bill Holders

• Bond Holders

Tom just bought a bond from United Pet Group. This bond is only backed by the financial reputation of the company, not the assets. What type of bond did Tom buy?

• secured bond

• debenture

• both a and b

• neither a nor b