Question 1

________ provides funds for new or expanding firms thought to have significant potential and may demand an ownership stake in the business.

Accepted Answer

A)  A pension fund 
B)  The International Monetary Fund (IMF) 
C)  A chartered bank 
D)  A global bank 
E)  A venture capital fund 
A)  A pension fund 
B)  The International Monetary Fund (IMF) 
C)  A chartered bank 
D)  A global bank 
E)  A venture capital fund

Question 2

The characteristics of money are

Accepted Answer

A)  divisible, interchangeable, portable, and exchangeable. 
B)  durable, paper, coin, and stable. 
C)  interchangeable, divisible, paper, and banks. 
D)  durable, divisible, stable, and portable. 
E)  portable, divisible, durable, and interchangeable. 
A)  divisible, interchangeable, portable, and exchangeable. 
B)  durable, paper, coin, and stable. 
C)  interchangeable, divisible, paper, and banks. 
D)  durable, divisible, stable, and portable. 
E)  portable, divisible, durable, and interchangeable.

Question 3

Experts are increasingly sounding a warning about mounting credit card debt. Given that, which of the following would be an unwise strategy for a credit card company?

Accepted Answer

A)  Making sure the company's credit card rules are clear and easy-to-understand 
B)  Charging the same interest rate as other credit card companies 
C)  Ensuring that fees for exceeding credit limits are no higher than necessary 
D)  Increasing the value of the promotional items that are used to attract new credit card customers 
E)  Offering free debt counselling to credit card customers 
A)  Making sure the company's credit card rules are clear and easy-to-understand 
B)  Charging the same interest rate as other credit card companies 
C)  Ensuring that fees for exceeding credit limits are no higher than necessary 
D)  Increasing the value of the promotional items that are used to attract new credit card customers 
E)  Offering free debt counselling to credit card customers

Question 4

Smart cards are credit card sized plastic cards that can be programmed with electronic money

Accepted Answer

A) True 
 B)False

Question 5

If the Bank of Canada wants to reduce inflation, it can sell government securities.

Accepted Answer

A) True 
 B)False

Question 6

When the Bank of Canada wants to stimulate business activity and increase the money supply, it

Accepted Answer

A)  buys government securities. 
B)  raises the reserve requirement. 
C)  decreases government spending. 
D)  raises the bank rate. 
E)  sells government securities. 
A)  buys government securities. 
B)  raises the reserve requirement. 
C)  decreases government spending. 
D)  raises the bank rate. 
E)  sells government securities.

Question 7

List several examples of electronic funds transfer.

Accepted Answer

Automated banking machines, di

Question 8

A country's currency becomes overvalued when its exchange rate is higher than warranted by its economic conditions.

Accepted Answer

A) True 
 B)False

Question 9

Depending on the time of the year, meat may be in short supply thus violating the money criterion of being

Accepted Answer

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

Question 10

Summarize the fluctuations in the value of the Canadian dollar relative to the U.S. dollar over the last few decades, and the impact these fluctuations have had on Canadian businesses.

Accepted Answer

In the 1980s and 1990s, Canadians had be

Question 11

The value of the Canadian dollar

Accepted Answer

A)  is always valued at the same exchange rate. 
B)  typically trades above the U.S. dollar. 
C)  typically values at par with the U.S. dollar. 
D)  reflects the overall supply and demand for Canadian dollars both at home and abroad. 
E)  none of these. 
A)  is always valued at the same exchange rate. 
B)  typically trades above the U.S. dollar. 
C)  typically values at par with the U.S. dollar. 
D)  reflects the overall supply and demand for Canadian dollars both at home and abroad. 
E)  none of these.

Question 12

A banker's acceptance promises that the bank will pay some specified amount at a future date.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following reasons is the primary motivator for a bank to acquire new depositors?

Accepted Answer

A)  A new deposit account will make more funds available to pay the interest on other deposit accounts. 
B)  A new deposit account will make more funds available to pay the bank's employees. 
C)  A new deposit account will make more funds available to give out in loans. 
D)  A new deposit account will make more funds available to give out in dividends to its investors. 
E)  A new deposit account will make more funds available to facilitate brokerage transactions. 
A)  A new deposit account will make more funds available to pay the interest on other deposit accounts. 
B)  A new deposit account will make more funds available to pay the bank's employees. 
C)  A new deposit account will make more funds available to give out in loans. 
D)  A new deposit account will make more funds available to give out in dividends to its investors. 
E)  A new deposit account will make more funds available to facilitate brokerage transactions.

Question 14

What are the four characteristics of money?

Accepted Answer

Portability, divisib

Question 15

Which of the following is correct with regard to Canadian banks?

Accepted Answer

A)  They are not allowed to provide financing to small businesses because those businesses are too risky. 
B)  They are not allowed to sell shares of stock to the general public. 
C)  They are allowed to provide insurance services, but not in their bank branches. 
D)  They are protected from competition from foreign controlled banks. 
E)  All of these are correct. 
A)  They are not allowed to provide financing to small businesses because those businesses are too risky. 
B)  They are not allowed to sell shares of stock to the general public. 
C)  They are allowed to provide insurance services, but not in their bank branches. 
D)  They are protected from competition from foreign controlled banks. 
E)  All of these are correct.

Question 16

Joanne has money in a ________; this requires notice prior to making a withdrawal and cannot be transferred to others by a written cheque.

Accepted Answer

A)  demand deposit 
B)  money market fund 
C)  jar 
D)  certified cheque 
E)  time deposit 
A)  demand deposit 
B)  money market fund 
C)  jar 
D)  certified cheque 
E)  time deposit

Question 17

A sales finance company finances installment purchases only for consumers, not businesses.

Accepted Answer

A) True 
 B)False

Question 18

Regarding the international payments process, which statement is true?

Accepted Answer

A)  In international trade, money will flow from the country with the strongest currency to that of the weakest. 
B)  The World Bank monitors the trade of its members to insure that money is flowing properly between the various countries. 
C)  The World Bank monitors the national banks of its members to insure that money is flowing properly between the various countries. 
D)  By international law, international trade must involve money flowing between two countries. 
E)  Money does not actually have to flow between two countries. 
A)  In international trade, money will flow from the country with the strongest currency to that of the weakest. 
B)  The World Bank monitors the trade of its members to insure that money is flowing properly between the various countries. 
C)  The World Bank monitors the national banks of its members to insure that money is flowing properly between the various countries. 
D)  By international law, international trade must involve money flowing between two countries. 
E)  Money does not actually have to flow between two countries.

Question 19

When a bank makes your monthly bill payments and manages your investment portfolio, this is known as

Accepted Answer

A)  a trust service. 
B)  a smart card. 
C)  an ABM. 
D)  a direct deposit. 
E)  a point-of-sale transfer. 
A)  a trust service. 
B)  a smart card. 
C)  an ABM. 
D)  a direct deposit. 
E)  a point-of-sale transfer.

Question 20

M-1 is a more reliable measure of money supply than M-2.

Accepted Answer

A) True 
 B)False

________ provides funds for new or expanding firms thought to have significant potential and may demand an ownership stake in the business.

The characteristics of money are

Experts are increasingly sounding a warning about mounting credit card debt. Given that, which of the following would be an unwise strategy for a credit card company?

Smart cards are credit card sized plastic cards that can be programmed with electronic money

If the Bank of Canada wants to reduce inflation, it can sell government securities.

When the Bank of Canada wants to stimulate business activity and increase the money supply, it

List several examples of electronic funds transfer.

A country's currency becomes overvalued when its exchange rate is higher than warranted by its economic conditions.

Depending on the time of the year, meat may be in short supply thus violating the money criterion of being

Summarize the fluctuations in the value of the Canadian dollar relative to the U.S. dollar over the last few decades, and the impact these fluctuations have had on Canadian businesses.

The value of the Canadian dollar

A banker's acceptance promises that the bank will pay some specified amount at a future date.

Which of the following reasons is the primary motivator for a bank to acquire new depositors?

What are the four characteristics of money?

Which of the following is correct with regard to Canadian banks?

Joanne has money in a ________; this requires notice prior to making a withdrawal and cannot be transferred to others by a written cheque.

A sales finance company finances installment purchases only for consumers, not businesses.

Regarding the international payments process, which statement is true?

When a bank makes your monthly bill payments and manages your investment portfolio, this is known as

M-1 is a more reliable measure of money supply than M-2.

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

Exam 14: Money and Banking

________ provides funds for new or expanding firms thought to have significant potential and may demand an ownership stake in the business.

The characteristics of money are

Experts are increasingly sounding a warning about mounting credit card debt. Given that, which of the following would be an unwise strategy for a credit card company?

Smart cards are credit card sized plastic cards that can be programmed with electronic money

If the Bank of Canada wants to reduce inflation, it can sell government securities.

When the Bank of Canada wants to stimulate business activity and increase the money supply, it

List several examples of electronic funds transfer.

A country's currency becomes overvalued when its exchange rate is higher than warranted by its economic conditions.

Depending on the time of the year, meat may be in short supply thus violating the money criterion of being

Summarize the fluctuations in the value of the Canadian dollar relative to the U.S. dollar over the last few decades, and the impact these fluctuations have had on Canadian businesses.

The value of the Canadian dollar

A banker's acceptance promises that the bank will pay some specified amount at a future date.

Which of the following reasons is the primary motivator for a bank to acquire new depositors?

What are the four characteristics of money?

Which of the following is correct with regard to Canadian banks?

Joanne has money in a ________; this requires notice prior to making a withdrawal and cannot be transferred to others by a written cheque.

A sales finance company finances installment purchases only for consumers, not businesses.

Regarding the international payments process, which statement is true?

When a bank makes your monthly bill payments and manages your investment portfolio, this is known as

M-1 is a more reliable measure of money supply than M-2.

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