Question 1

When does the value of money increase?

Accepted Answer

A)  When money serves as a store of value 
B)  When the supply of money is stable 
C)  When money is durable 
D)  When the money supply is low 
E)  When the money supply increases 
A)  When money serves as a store of value 
B)  When the supply of money is stable 
C)  When money is durable 
D)  When the money supply is low 
E)  When the money supply increases

Question 2

What caused the decline of barter as a means of obtaining something needed by a consumer?

Accepted Answer

A)  Development of the central bank system 
B)  The discovery of gold 
C)  The invention of the credit card 
D)  The use of bonds 
E)  The introduction of money 
A)  Development of the central bank system 
B)  The discovery of gold 
C)  The invention of the credit card 
D)  The use of bonds 
E)  The introduction of money

Question 3

How are factoring companies and financial corporations different?

Accepted Answer

Factoring companies buy accounts receiva

Question 4

Which of the following statements best explains how financial institutions create money?

Accepted Answer

A)  By opening new chequing accounts and giving more people access to readily available cash, financial institutions expand the money supply. 
B)  By issuing money through government contracts, financial institutions expand the money supply. 
C)  By taking deposits and loaning out these funds, financial institutions expand the money supply. 
D)  By collecting interest on its accounts through investments, financial institutions expand the money supply. 
E)  By giving interest from its accounts to its clients, financial institutions expand the money supply. 
A)  By opening new chequing accounts and giving more people access to readily available cash, financial institutions expand the money supply. 
B)  By issuing money through government contracts, financial institutions expand the money supply. 
C)  By taking deposits and loaning out these funds, financial institutions expand the money supply. 
D)  By collecting interest on its accounts through investments, financial institutions expand the money supply. 
E)  By giving interest from its accounts to its clients, financial institutions expand the money supply.

Question 5

Describe the kinds of business firms that make up "pillar #3" of the Canadian financial system.

Accepted Answer

- Life insurance company: a mutual or st

Question 6

The reason why a savings account is not considered a component of the M-1 money supply is that it earns interest.

Accepted Answer

A) True 
 B)False

Question 7

Devaluing a country's currency decreases its exchange value, and this will make it less expensive for other countries to buy the country's products.

Accepted Answer

A) True 
 B)False

Question 8

Money lets you measure the relative values of goods and services. In so doing, money is performing which of the following functions?

Accepted Answer

A)  Store of value 
B)  Medium of exchange 
C)  Determination factor 
D)  Monetary flagging 
E)  Unit of account 
A)  Store of value 
B)  Medium of exchange 
C)  Determination factor 
D)  Monetary flagging 
E)  Unit of account

Question 9

A ________ company shares risks with its policyholders in return for payment of a premium.

Accepted Answer

A)  life insurance 
B)  venture capital 
C)  credit union 
D)  sales finance 
E)  factoring 
A)  life insurance 
B)  venture capital 
C)  credit union 
D)  sales finance 
E)  factoring

Question 10

Compare and contrast the services offered by chartered banks and credit unions.

Accepted Answer

Chartered banks provide pension services

Question 11

All of the following are true about credit cards except

Accepted Answer

A)  credit cards are a store of value. 
B)  credit cards are quite convenient. 
C)  2 to 5 percent of total credit-sales dollars goes to card issuers. 
D)  credit cards serve as a temporary medium of exchange. 
E)  credit cards are extremely profitable for the companies that issue them. 
A)  credit cards are a store of value. 
B)  credit cards are quite convenient. 
C)  2 to 5 percent of total credit-sales dollars goes to card issuers. 
D)  credit cards serve as a temporary medium of exchange. 
E)  credit cards are extremely profitable for the companies that issue them.

Question 12

The law of one price ensures that no country's currency is overvalued.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is the main justification for the World Bank to fund national improvements by making loans to build roads and hospitals?

Accepted Answer

A)  The resulting improvements will help stabilize the political situation, and hence the international trade, of certain developing countries. 
B)  The resulting improvements will help increase the productive capacity, and hence the international trade, of certain developing countries. 
C)  The resulting improvements will help increase the population morale, and hence the international trade, of certain developing countries. 
D)  The resulting improvements will help increase the overall quality of life, and hence the international trade, of certain developing countries. 
E)  The resulting improvements will help increase the value of the currency, and hence the international trade, of certain developing countries. 
A)  The resulting improvements will help stabilize the political situation, and hence the international trade, of certain developing countries. 
B)  The resulting improvements will help increase the productive capacity, and hence the international trade, of certain developing countries. 
C)  The resulting improvements will help increase the population morale, and hence the international trade, of certain developing countries. 
D)  The resulting improvements will help increase the overall quality of life, and hence the international trade, of certain developing countries. 
E)  The resulting improvements will help increase the value of the currency, and hence the international trade, of certain developing countries.

Question 14

When credit and debit card information is embedded in smartphones, you have

Accepted Answer

A)  a mobile digital wallet. 
B)  a system which is designed to allow hackers to steal your money. 
C)  a smart card. 
D)  a point-of-sale transfer system. 
E)  a debit card 
A)  a mobile digital wallet. 
B)  a system which is designed to allow hackers to steal your money. 
C)  a smart card. 
D)  a point-of-sale transfer system. 
E)  a debit card

Question 15

The largest bank in Canada (in terms of sales revenue) is

Accepted Answer

A)  Canadian Imperial Bank of Commerce. 
B)  Bank of Montreal. 
C)  Toronto-Dominion Bank. 
D)  Royal Bank of Canada. 
E)  National Bank. 
A)  Canadian Imperial Bank of Commerce. 
B)  Bank of Montreal. 
C)  Toronto-Dominion Bank. 
D)  Royal Bank of Canada. 
E)  National Bank.

Question 16

Because meat spoils, it fails to meet the money criterion of being

Accepted Answer

A)  valuable. 
B)  divisible. 
C)  stable. 
D)  durable. 
E)  portable. 
A)  valuable. 
B)  divisible. 
C)  stable. 
D)  durable. 
E)  portable.

Question 17

The World Bank funds national improvements by making loans to build roads, schools, power plants, and hospitals.

Accepted Answer

A) True 
 B)False

Question 18

Briefly describe three electronic technologies.

Accepted Answer

- Automated teller machines: automatic t

Question 19

One feature of time deposits is that advance notice is required to make a withdrawal.

Accepted Answer

A) True 
 B)False

Question 20

Joe is a research economist for the Royal Bank. His most reliable measure of money would be

Accepted Answer

A)  currency plus demand deposits. 
B)  M-2. 
C)  demand deposits. 
D)  M-1. 
E)  currency. 
A)  currency plus demand deposits. 
B)  M-2. 
C)  demand deposits. 
D)  M-1. 
E)  currency.

When does the value of money increase?

What caused the decline of barter as a means of obtaining something needed by a consumer?

How are factoring companies and financial corporations different?

Which of the following statements best explains how financial institutions create money?

Describe the kinds of business firms that make up "pillar #3" of the Canadian financial system.

The reason why a savings account is not considered a component of the M-1 money supply is that it earns interest.

Devaluing a country's currency decreases its exchange value, and this will make it less expensive for other countries to buy the country's products.

Money lets you measure the relative values of goods and services. In so doing, money is performing which of the following functions?

A ________ company shares risks with its policyholders in return for payment of a premium.

Compare and contrast the services offered by chartered banks and credit unions.

All of the following are true about credit cards except

The law of one price ensures that no country's currency is overvalued.

Which of the following is the main justification for the World Bank to fund national improvements by making loans to build roads and hospitals?

When credit and debit card information is embedded in smartphones, you have

The largest bank in Canada (in terms of sales revenue) is

Because meat spoils, it fails to meet the money criterion of being

The World Bank funds national improvements by making loans to build roads, schools, power plants, and hospitals.

Briefly describe three electronic technologies.

One feature of time deposits is that advance notice is required to make a withdrawal.

Joe is a research economist for the Royal Bank. His most reliable measure of money would be

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Finacial Decisions and Risk Management

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Exam 14: Money and Banking

When does the value of money increase?

What caused the decline of barter as a means of obtaining something needed by a consumer?

How are factoring companies and financial corporations different?

Which of the following statements best explains how financial institutions create money?

Describe the kinds of business firms that make up "pillar #3" of the Canadian financial system.

The reason why a savings account is not considered a component of the M-1 money supply is that it earns interest.

Devaluing a country's currency decreases its exchange value, and this will make it less expensive for other countries to buy the country's products.

Money lets you measure the relative values of goods and services. In so doing, money is performing which of the following functions?

A ________ company shares risks with its policyholders in return for payment of a premium.

Compare and contrast the services offered by chartered banks and credit unions.

All of the following are true about credit cards except

The law of one price ensures that no country's currency is overvalued.

Which of the following is the main justification for the World Bank to fund national improvements by making loans to build roads and hospitals?

When credit and debit card information is embedded in smartphones, you have

The largest bank in Canada (in terms of sales revenue) is

Because meat spoils, it fails to meet the money criterion of being

The World Bank funds national improvements by making loans to build roads, schools, power plants, and hospitals.

Briefly describe three electronic technologies.

One feature of time deposits is that advance notice is required to make a withdrawal.

Joe is a research economist for the Royal Bank. His most reliable measure of money would be

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Finacial Decisions and Risk Management

Filters