Question 1

Trust and mortgage loan companies are usually ________.

Accepted Answer

A)  operating under a charter issued by either the federal government or one of the provincial governments 
B)  investors in commercial loans 
C)  more profitable than chartered banks and credit unions and caisses populaires 
D)  regulated and supervised by the TML 
A)  operating under a charter issued by either the federal government or one of the provincial governments 
B)  investors in commercial loans 
C)  more profitable than chartered banks and credit unions and caisses populaires 
D)  regulated and supervised by the TML

Question 2

ATMs were developed because of breakthroughs in technology and as a ________.

Accepted Answer

A)  means of avoiding restrictive branching regulations 
B)  means of avoiding paying interest to corporate customers 
C)  way of concealing transactions from the SEC 
D)  increasing the competition from foreign banks 
A)  means of avoiding restrictive branching regulations 
B)  means of avoiding paying interest to corporate customers 
C)  way of concealing transactions from the SEC 
D)  increasing the competition from foreign banks

Question 3

The modern Canadian banking system began with ________.

Accepted Answer

A)  the Chartered Bank of Upper Canada in 1821 
B)  the Bank of Montreal in 1817 
C)  the Bank of Lower Canada in 1801 
D)  the Bank of New Brunswick in 1820 
A)  the Chartered Bank of Upper Canada in 1821 
B)  the Bank of Montreal in 1817 
C)  the Bank of Lower Canada in 1801 
D)  the Bank of New Brunswick in 1820

Question 4

Near banks are defined as ________.

Accepted Answer

A)  banks, brokers, and credit unions and caisses populaires 
B)  banks and trust and mortgage loan companies 
C)  trust and mortgage loan companies, and credit unions and caisses populaires 
D)  trust and mortgage loan companies, and brokers 
A)  banks, brokers, and credit unions and caisses populaires 
B)  banks and trust and mortgage loan companies 
C)  trust and mortgage loan companies, and credit unions and caisses populaires 
D)  trust and mortgage loan companies, and brokers

Question 5

Merger review policy within the 2001 Bank Act Reform acknowledges that ________.

Accepted Answer

A)  mergers are legitimate business options 
B)  mergers are anti-competitive and reduce financial stability 
C)  mergers are only allowable within small, widely held, banks 
D)  mergers are only allowable if the public believes they are warranted 
A)  mergers are legitimate business options 
B)  mergers are anti-competitive and reduce financial stability 
C)  mergers are only allowable within small, widely held, banks 
D)  mergers are only allowable if the public believes they are warranted

Question 6

The difference between a Schedule II and a Schedule III bank is that ________.

Accepted Answer

A)  a Schedule II bank is a Canadian subsidiary of a foreign bank 
B)  a Schedule III bank is a foreign bank is not allowed to branch directly into Canada 
C)  a foreign bank may enter the Canadian banking industry only as a Schedule III bank 
D)  widely held foreign banks can own 50 percent of a Canadian bank subsidiary 
A)  a Schedule II bank is a Canadian subsidiary of a foreign bank 
B)  a Schedule III bank is a foreign bank is not allowed to branch directly into Canada 
C)  a foreign bank may enter the Canadian banking industry only as a Schedule III bank 
D)  widely held foreign banks can own 50 percent of a Canadian bank subsidiary

Question 7

Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to as ________.

Accepted Answer

A)  municipal bonds 
B)  Yankee bonds 
C)  "fallen angels" 
D)  junk bonds 
A)  municipal bonds 
B)  Yankee bonds 
C)  "fallen angels" 
D)  junk bonds

Question 8

So-called fallen angels differ from junk bonds in that ________.

Accepted Answer

A)  junk bonds refer to newly issued bonds with low credit ratings, whereas fallen angels refer to previously bonds that have had their credit ratings fall below Baa 
B)  junk bonds refer to previously bonds that have had their credit ratings fall below Baa, whereas fallen angels refer to newly issued bonds with low credit ratings 
C)  junk bonds have ratings below Baa, whereas fallen angels have ratings below C 
D)  fallen angels have ratings below Baa, whereas junk bonds have ratings below C 
A)  junk bonds refer to newly issued bonds with low credit ratings, whereas fallen angels refer to previously bonds that have had their credit ratings fall below Baa 
B)  junk bonds refer to previously bonds that have had their credit ratings fall below Baa, whereas fallen angels refer to newly issued bonds with low credit ratings 
C)  junk bonds have ratings below Baa, whereas fallen angels have ratings below C 
D)  fallen angels have ratings below Baa, whereas junk bonds have ratings below C

Question 9

Bank consolidation will likely result in ________.

Accepted Answer

A)  less competition 
B)  the elimination of credit unions 
C)  more competition 
D)  a shift in assets from larger banks to smaller banks 
A)  less competition 
B)  the elimination of credit unions 
C)  more competition 
D)  a shift in assets from larger banks to smaller banks

Question 10

Bank consolidation will likely result in ________.

Accepted Answer

A)  less competition 
B)  the elimination of credit unions 
C)  large, complex banking organizations 
D)  a shift in assets from larger banks to smaller banks 
A)  less competition 
B)  the elimination of credit unions 
C)  large, complex banking organizations 
D)  a shift in assets from larger banks to smaller banks

Question 11

The Bank Act Reform took effect in ________.

Accepted Answer

A)  October 2001 
B)  January 2001 
C)  December 2001 
D)  May 2001 
A)  October 2001 
B)  January 2001 
C)  December 2001 
D)  May 2001

Question 12

Currency circulated by banks that could be redeemed for gold was called ________.

Accepted Answer

A)  junk bonds 
B)  banknotes 
C)  gold bills 
D)  state money 
A)  junk bonds 
B)  banknotes 
C)  gold bills 
D)  state money

Trust and mortgage loan companies are usually ________.

ATMs were developed because of breakthroughs in technology and as a ________.

The modern Canadian banking system began with ________.

Near banks are defined as ________.

Merger review policy within the 2001 Bank Act Reform acknowledges that ________.

The difference between a Schedule II and a Schedule III bank is that ________.

Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to as ________.

So-called fallen angels differ from junk bonds in that ________.

Bank consolidation will likely result in ________.

Bank consolidation will likely result in ________.

The Bank Act Reform took effect in ________.

Currency circulated by banks that could be redeemed for gold was called ________.

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Nonbank Finance

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Exam 11: Banking Industry: Structure and Competition

Trust and mortgage loan companies are usually ________.

ATMs were developed because of breakthroughs in technology and as a ________.

The modern Canadian banking system began with ________.

Near banks are defined as ________.

Merger review policy within the 2001 Bank Act Reform acknowledges that ________.

The difference between a Schedule II and a Schedule III bank is that ________.

Newly-issued high-yield bonds rated below investment grade by the bond-rating agencies are frequently referred to as ________.

So-called fallen angels differ from junk bonds in that ________.

Bank consolidation will likely result in ________.

Bank consolidation will likely result in ________.

The Bank Act Reform took effect in ________.

Currency circulated by banks that could be redeemed for gold was called ________.

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

What Is Money

Understanding Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Economic Analysis of Financial Regulation

Nonbank Finance

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters