Question 1

Explain what is meant by the terms expansionary policy and restrictive policy that may be implemented by the Bank of Canada.

Accepted Answer

The bank can implement either

Question 2

What is the Bank of Canada?

Accepted Answer

The Bank of Canada is Canada's

Question 3

Money held by a financial institution which requires notice prior to making a withdrawal and cannot be transferred to others by a written cheque is known as

Accepted Answer

A)  money market funds and accounts. 
B)  time deposits. 
C)  currency. 
D)  certified holdings. 
E)  demand deposits. 
A)  money market funds and accounts. 
B)  time deposits. 
C)  currency. 
D)  certified holdings. 
E)  demand deposits.

Question 4

After using her ________ card to make a purchase, Janet checks an electronic display to determine how much money is left on the card.

Accepted Answer

A)  debit 
B)  smart 
C)  direct purchase 
D)  direct deposit 
E)  credit 
A)  debit 
B)  smart 
C)  direct purchase 
D)  direct deposit 
E)  credit

Question 5

Domino Grace is a financial services company. It has started using scientific principles of management to analyze the compensation system for its financial advisors. Under the current system, revenue goals are based on the financial advisors' performances in the previous year. Domino Grace managers believe that the financial advisors could generate much more revenue if they were encouraged to offer derivatives, a complex but potentially profitable investment product. Suppose that investments in derivatives generated $5 million of revenue for Domino Grace during this calendar year. The managers who proposed offering derivatives contend that this statistic demonstrates that offering derivatives increased Domino Grace revenues this calendar year by $5 million. Which of the following points out a flaw in this argument?

Accepted Answer

A)  It assumes that offering derivatives could not have generated less than $5 million. 
B)  It claims without warrant that offering derivatives will generate high revenues in future years. 
C)  It fails to demonstrate that offering derivatives generated more money than any alternative would generate. 
D)  It fails to account for the revenues that could have been generated by alternative uses of the resources that went into offering derivatives. 
E)  It ignores the possibility that some investors lost money by investing in derivatives through Domino Grace. 
A)  It assumes that offering derivatives could not have generated less than $5 million. 
B)  It claims without warrant that offering derivatives will generate high revenues in future years. 
C)  It fails to demonstrate that offering derivatives generated more money than any alternative would generate. 
D)  It fails to account for the revenues that could have been generated by alternative uses of the resources that went into offering derivatives. 
E)  It ignores the possibility that some investors lost money by investing in derivatives through Domino Grace.

Question 6

Banks create money through contracts with the federal government to mint bills and coins.

Accepted Answer

A) True 
 B)False

Question 7

Explain the law of one price and the term "Big MacCurrencies."

Accepted Answer

The law of one price is a method of dete

Question 8

Banks are permitted to own securities dealers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following best describes the portability characteristic of money?

Accepted Answer

A)  It neither dies nor spoils and if it wears out, it can be replaced. 
B)  Units of money can be matched with the value of goods. 
C)  It can be exchanged across national borders. 
D)  It allows people to measure the relative value of goods and services. 
E)  It is light and easy to handle. 
A)  It neither dies nor spoils and if it wears out, it can be replaced. 
B)  Units of money can be matched with the value of goods. 
C)  It can be exchanged across national borders. 
D)  It allows people to measure the relative value of goods and services. 
E)  It is light and easy to handle.

Question 10

Which of the following changes have occurred in banking because of deregulation?

Accepted Answer

A)  Large business firms have increased their reliance on bank loans. 
B)  Banks can now make whatever profits they can manage. 
C)  Banks are providing a narrower and more highly focused array of financial products to their customers than they did before deregulation. 
D)  Banks have increased the training given to employees. 
E)  Bank profits are now being sent to foreign financial companies. 
A)  Large business firms have increased their reliance on bank loans. 
B)  Banks can now make whatever profits they can manage. 
C)  Banks are providing a narrower and more highly focused array of financial products to their customers than they did before deregulation. 
D)  Banks have increased the training given to employees. 
E)  Bank profits are now being sent to foreign financial companies.

Question 11

If the reserve requirement was 10 percent, a $100 deposit could result in a ________ increase in new deposits for all banks in the system.

Accepted Answer

A)  $200 
B)  $500 
C)  $1000 
D)  $10 000 
E)  $100 000 
A)  $200 
B)  $500 
C)  $1000 
D)  $10 000 
E)  $100 000

Question 12

In 2014, venture capital firms in Canada raised

Accepted Answer

A)  $40 million. 
B)  $95 million. 
C)  $1.9 billion. 
D)  $3.9 billion. 
E)  $11.4 billion. 
A)  $40 million. 
B)  $95 million. 
C)  $1.9 billion. 
D)  $3.9 billion. 
E)  $11.4 billion.

Question 13

What is the World Bank?

Accepted Answer

The World Bank is a United Nat

Question 14

Which of the following is a form of money?

Accepted Answer

A)  Japanese yen 
B)  Bonds 
C)  A gold medallion 
D)  IBM common stock 
E)  A Visa credit card 
A)  Japanese yen 
B)  Bonds 
C)  A gold medallion 
D)  IBM common stock 
E)  A Visa credit card

Question 15

Credit cards serve as a temporary medium of exchange but are not a store of value; therefore, they are do not qualify as a form of money.

Accepted Answer

A) True 
 B)False

Question 16

Canadians hold a total of ________ MasterCard and Visa credit cards.

Accepted Answer

A)  5 million 
B)  20.6 million 
C)  43 million 
D)  76.3 million 
E)  190.8 million 
A)  5 million 
B)  20.6 million 
C)  43 million 
D)  76.3 million 
E)  190.8 million

Question 17

Which of the following is correct with regard to government sources of funds for businesses?

Accepted Answer

A)  The Business Development Bank of Canada helps small companies sell stock to the general public. 
B)  The Export Development Corporation finances and insures export sales for Canadian companies. 
C)  The Canada Mortgage and Housing Corporation makes mortgages available to businesses, but it does not guarantee those mortgages. 
D)  The Department of Business Expansion gives grants for businesses that provide services, but not for business that provide physical products. 
E)  All of these are correct. 
A)  The Business Development Bank of Canada helps small companies sell stock to the general public. 
B)  The Export Development Corporation finances and insures export sales for Canadian companies. 
C)  The Canada Mortgage and Housing Corporation makes mortgages available to businesses, but it does not guarantee those mortgages. 
D)  The Department of Business Expansion gives grants for businesses that provide services, but not for business that provide physical products. 
E)  All of these are correct.

Question 18

Which of the following accounts for nearly all the nation's money supply?

Accepted Answer

A)  M-1 
B)  Currency 
C)  Demand deposits 
D)  Currency plus demand deposits 
E)  M-2 
A)  M-1 
B)  Currency 
C)  Demand deposits 
D)  Currency plus demand deposits 
E)  M-2

Question 19

A chartered bank is a privately owned, profit seeking business firm.

Accepted Answer

A) True 
 B)False

Question 20

When the Bank of Canada wants to slow down business activity and decrease the money supply, it

Accepted Answer

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

Explain what is meant by the terms expansionary policy and restrictive policy that may be implemented by the Bank of Canada.

What is the Bank of Canada?

Money held by a financial institution which requires notice prior to making a withdrawal and cannot be transferred to others by a written cheque is known as

After using her ________ card to make a purchase, Janet checks an electronic display to determine how much money is left on the card.

Banks create money through contracts with the federal government to mint bills and coins.

Explain the law of one price and the term "Big MacCurrencies."

Banks are permitted to own securities dealers.

Which of the following best describes the portability characteristic of money?

Which of the following changes have occurred in banking because of deregulation?

If the reserve requirement was 10 percent, a $100 deposit could result in a ________ increase in new deposits for all banks in the system.

In 2014, venture capital firms in Canada raised

What is the World Bank?

Which of the following is a form of money?

Credit cards serve as a temporary medium of exchange but are not a store of value; therefore, they are do not qualify as a form of money.

Canadians hold a total of ________ MasterCard and Visa credit cards.

Which of the following is correct with regard to government sources of funds for businesses?

Which of the following accounts for nearly all the nation's money supply?

A chartered bank is a privately owned, profit seeking business firm.

When the Bank of Canada wants to slow down business activity and decrease the money supply, it

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

Explain what is meant by the terms expansionary policy and restrictive policy that may be implemented by the Bank of Canada.

What is the Bank of Canada?

Money held by a financial institution which requires notice prior to making a withdrawal and cannot be transferred to others by a written cheque is known as

After using her ________ card to make a purchase, Janet checks an electronic display to determine how much money is left on the card.

Banks create money through contracts with the federal government to mint bills and coins.

Explain the law of one price and the term "Big MacCurrencies."

Banks are permitted to own securities dealers.

Which of the following best describes the portability characteristic of money?

Which of the following changes have occurred in banking because of deregulation?

If the reserve requirement was 10 percent, a $100 deposit could result in a ________ increase in new deposits for all banks in the system.

In 2014, venture capital firms in Canada raised

What is the World Bank?

Which of the following is a form of money?

Credit cards serve as a temporary medium of exchange but are not a store of value; therefore, they are do not qualify as a form of money.

Canadians hold a total of ________ MasterCard and Visa credit cards.

Which of the following is correct with regard to government sources of funds for businesses?

Which of the following accounts for nearly all the nation's money supply?

A chartered bank is a privately owned, profit seeking business firm.

When the Bank of Canada wants to slow down business activity and decrease the money supply, it

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