Exam 14: Money and Banking

When buying from a supplier in France, an Ontario-based company has arranged for its bank to pay the supplier the cost of the desired material when it has passed customs in Canada. Which of the following terms is this type of bank promise called?

If Chris takes the money from her paycheque and gives half of it to her landlord to pay last month's rent, how is she using the money?

Banks are the major source of short-term loans for business.

The interest rate at which chartered banks can borrow from the Bank of Canada is the

All products can be valued and measured in terms of dollars. This illustrates the ________ function of money.

How are the World Bank and the International Monetary Fund different?

A financial corporation that specializes in financing installment purchases made by individuals and firms is called a

When the Bank of Canada buys government securities, this reduces the money supply because the government has spent some of its money and therefore has less to spend.

What is M-2 and what are the major elements that make it up?

Identify the components of the M-1 money supply.

Which of the following is not one of the "four financial pillars"?

The expression "$1000 worth of clothes" represents

The M-2 measurement of the money supply includes everything in M-1 plus

In Canada, the value of goods bought with credit cards each year is about

If today's currency wears out it can be replaced, thus demonstrating that it is

Foreign banks are not allowed to do business in Canada.

Which of the three functions of money does a time deposit account most exemplify?

Canadian Heritage, an investment company that groups together pools of assets, showed an average return of 44% for the last three months. Canadian Heritage set up ________ for its investors.

Why are banks considered creators of money?

What is the prime rate of interest?