Question 1

In the absence of a reserve requirement, banks can create essentially infinite amounts of money.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is correct regarding credit cards?

Accepted Answer

A)  They are a store of value. 
B)  They are not a money substitute. 
C)  They are a permanent medium of exchange. 
D)  They are becoming more important but are still not a major factor in the purchase of consumer goods. 
E)  They are often referred to as "plastic money." 
A)  They are a store of value. 
B)  They are not a money substitute. 
C)  They are a permanent medium of exchange. 
D)  They are becoming more important but are still not a major factor in the purchase of consumer goods. 
E)  They are often referred to as "plastic money."

Question 3

What sources of funds are available to business firms in addition to the institutions that make up the "4 pillars" of the Canadian financial system?

Accepted Answer

One source is government granting agenci

Question 4

If the Bank of Canada wants to slow down business activity, it can raise the bank rate. This will make banks less willing to make loans to businesses.

Accepted Answer

A) True 
 B)False

Question 5

Money is

Accepted Answer

A)  important in a market economy, but not in a command economy. 
B)  tokens that represent a countries resources that are accepted in every place of the world. 
C)  any object generally accepted by people as payment for goods and services. 
D)  that with which an individuals' efforts must be rewarded. 
E)  wealth. 
A)  important in a market economy, but not in a command economy. 
B)  tokens that represent a countries resources that are accepted in every place of the world. 
C)  any object generally accepted by people as payment for goods and services. 
D)  that with which an individuals' efforts must be rewarded. 
E)  wealth.

Question 6

The law of one price says that

Accepted Answer

A)  almost all countries will have a trade deficit. 
B)  identical products should sell for the same price in all countries. 
C)  a good must be available for the same price in every province in Canada. 
D)  the price of a Rolex watch is the same in all countries. 
E)  all currencies are overvalued. 
A)  almost all countries will have a trade deficit. 
B)  identical products should sell for the same price in all countries. 
C)  a good must be available for the same price in every province in Canada. 
D)  the price of a Rolex watch is the same in all countries. 
E)  all currencies are overvalued.

Question 7

Credit unions usually pay consumers higher interest rates on GICs than banks do.

Accepted Answer

A) True 
 B)False

Question 8

The law of one price is

Accepted Answer

A)  the principle that to be competitive, a company must offer its product at only one price. 
B)  a principle suggested by Canadian economists that means that all products in a given economy should be sold for the same price. 
C)  that the supply and demand of a product must not alter its price. 
D)  a principle that identical products should sell for the same price in all countries. 
E)  if a retailer puts an item on sale, all other retailers must match their price for consumers. 
A)  the principle that to be competitive, a company must offer its product at only one price. 
B)  a principle suggested by Canadian economists that means that all products in a given economy should be sold for the same price. 
C)  that the supply and demand of a product must not alter its price. 
D)  a principle that identical products should sell for the same price in all countries. 
E)  if a retailer puts an item on sale, all other retailers must match their price for consumers.

Question 9

Banks are allowed to sell insurance in their branches.

Accepted Answer

A) True 
 B)False

Question 10

Explain why beef would not make an appropriate form of currency in modern society.

Accepted Answer

- Beef is not portable, how would it be

Question 11

If Sally says she has purchased $250.00 worth of groceries, she is referring to money as

Accepted Answer

A)  a unit of account. 
B)  a method of divisibility. 
C)  a medium of exchange. 
D)  a store of value. 
E)  a measure of stability. 
A)  a unit of account. 
B)  a method of divisibility. 
C)  a medium of exchange. 
D)  a store of value. 
E)  a measure of stability.

Question 12

If the value of the Canadian dollar increases, Canadian companies will find it more difficult to compete internationally because goods exported from Canada will become more expensive for foreign buyers.

Accepted Answer

A) True 
 B)False

Question 13

Certificates of deposits (CDs) and saving certificates are classified as time deposits.

Accepted Answer

A) True 
 B)False

Question 14

Money, in the form of currency, can be used for future purchases and thus illustrates the ________ function of money.

Accepted Answer

A)  basis for banking system 
B)  store of value 
C)  medium of exchange 
D)  payment for labour 
E)  unit of account 
A)  basis for banking system 
B)  store of value 
C)  medium of exchange 
D)  payment for labour 
E)  unit of account

Question 15

Credit cards are widely used in business transactions but are not included in either M-1 or M-2.

Accepted Answer

A) True 
 B)False

Question 16

Why might nations decline to accept money from the International Monetary Fund?

Accepted Answer

Such nations may not want to accept the

Question 17

What is a debit card?

Accepted Answer

A debit card is a credit card

Question 18

Terri will be going to Ireland next week. She would be wise to arrange for a(n) ________ prior to leaving so that she can withdraw cash and transfer money between bank accounts on her trip.

Accepted Answer

A)  e-card 
B)  smart card 
C)  debit card 
D)  NetCash 
E)  e-cash 
A)  e-card 
B)  smart card 
C)  debit card 
D)  NetCash 
E)  e-cash

Question 19

Identify the types of businesses that make up the Canadian financial system.

Accepted Answer

- Chartered banks: privately owned, prof

Question 20

What feature of a credit union makes it different from all the other financial institutions?

Accepted Answer

A credit union provides financ

In the absence of a reserve requirement, banks can create essentially infinite amounts of money.

Which of the following is correct regarding credit cards?

What sources of funds are available to business firms in addition to the institutions that make up the "4 pillars" of the Canadian financial system?

If the Bank of Canada wants to slow down business activity, it can raise the bank rate. This will make banks less willing to make loans to businesses.

Money is

The law of one price says that

Credit unions usually pay consumers higher interest rates on GICs than banks do.

The law of one price is

Banks are allowed to sell insurance in their branches.

Explain why beef would not make an appropriate form of currency in modern society.

If Sally says she has purchased $250.00 worth of groceries, she is referring to money as

If the value of the Canadian dollar increases, Canadian companies will find it more difficult to compete internationally because goods exported from Canada will become more expensive for foreign buyers.

Certificates of deposits (CDs) and saving certificates are classified as time deposits.

Money, in the form of currency, can be used for future purchases and thus illustrates the ________ function of money.

Credit cards are widely used in business transactions but are not included in either M-1 or M-2.

Why might nations decline to accept money from the International Monetary Fund?

What is a debit card?

Terri will be going to Ireland next week. She would be wise to arrange for a(n) ________ prior to leaving so that she can withdraw cash and transfer money between bank accounts on her trip.

Identify the types of businesses that make up the Canadian financial system.

What feature of a credit union makes it different from all the other financial institutions?

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

In the absence of a reserve requirement, banks can create essentially infinite amounts of money.

Which of the following is correct regarding credit cards?

What sources of funds are available to business firms in addition to the institutions that make up the "4 pillars" of the Canadian financial system?

If the Bank of Canada wants to slow down business activity, it can raise the bank rate. This will make banks less willing to make loans to businesses.

Money is

The law of one price says that

Credit unions usually pay consumers higher interest rates on GICs than banks do.

The law of one price is

Banks are allowed to sell insurance in their branches.

Explain why beef would not make an appropriate form of currency in modern society.

If Sally says she has purchased $250.00 worth of groceries, she is referring to money as

If the value of the Canadian dollar increases, Canadian companies will find it more difficult to compete internationally because goods exported from Canada will become more expensive for foreign buyers.

Certificates of deposits (CDs) and saving certificates are classified as time deposits.

Money, in the form of currency, can be used for future purchases and thus illustrates the ________ function of money.

Credit cards are widely used in business transactions but are not included in either M-1 or M-2.

Why might nations decline to accept money from the International Monetary Fund?

What is a debit card?

Terri will be going to Ireland next week. She would be wise to arrange for a(n) ________ prior to leaving so that she can withdraw cash and transfer money between bank accounts on her trip.

Identify the types of businesses that make up the Canadian financial system.

What feature of a credit union makes it different from all the other financial institutions?

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