Question 1

A personal chequing account represents demand deposits because the bank must pay "on demand" to the person receiving the cheque.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is contained in the M-1 measurement of the money supply?

Accepted Answer

A)  The number of new automobiles produced in the nation 
B)  Currency and demand deposits 
C)  Credit card cash advances 
D)  The number of new homes started in the month 
E)  Time deposits 
A)  The number of new automobiles produced in the nation 
B)  Currency and demand deposits 
C)  Credit card cash advances 
D)  The number of new homes started in the month 
E)  Time deposits

Question 3

A corporation selling bonds to investors will often use a __________ to protect the bondholders' interests.

Accepted Answer

A)  trust company 
B)  chartered bank 
C)  credit union 
D)  caisses populaire 
E)  finance company 
A)  trust company 
B)  chartered bank 
C)  credit union 
D)  caisses populaire 
E)  finance company

Question 4

The United Nations agency that provides only a limited scope of financial services,such as funding national improvements in undeveloped countries,is the

Accepted Answer

A)  International Monetary Fund (IMF). 
B)  Interbank Bank. 
C)  World Bank. 
D)  Bank of Canada. 
E)  Global Bank. 
A)  International Monetary Fund (IMF). 
B)  Interbank Bank. 
C)  World Bank. 
D)  Bank of Canada. 
E)  Global Bank.

Question 5

Currency exchange,letters of credit,and banker's acceptances all relate to a bank's international services.

Accepted Answer

A) True 
 B)False

Question 6

According to the Big Mac index,

Accepted Answer

A)  Big Macs should be priced higher in China than in Canada. 
B)  the price of a Big Mac is used as a comparison of foreign currencies being overvalued or undervalued. 
C)  Big Macs are better than Mom's homemade hamburgers. 
D)  Big Macs are always cheaper in France than in Canada. 
E)  Big Macs are the same price all over the world. 
A)  Big Macs should be priced higher in China than in Canada. 
B)  the price of a Big Mac is used as a comparison of foreign currencies being overvalued or undervalued. 
C)  Big Macs are better than Mom's homemade hamburgers. 
D)  Big Macs are always cheaper in France than in Canada. 
E)  Big Macs are the same price all over the world.

Question 7

If the Bank of Canada wants to increase the money supply,it will purchase government securities.

Accepted Answer

A) True 
 B)False

Question 8

Describe the functions of the Bank of Canada and describe the tools it uses to control the money supply.

Accepted Answer

- the Bank of Canada manages the Canadia

Question 9

A financial firm is thinking about discontinuing its foreign currency investments in the euro in favor of the yuan in order to increase its profits.If the following facts were known,which one would MOST weaken this idea?

Accepted Answer

A)  Investments in the yuan have marginally outperformed investments in the euro during the last decade. 
B)  The vast majority of Canadian voters approve of European governments and disapprove of the Chinese government. 
C)  The company currently has much more money invested in the euro than in the yuan. 
D)  Europe is showing signs of recovery,but China is showing signs of a downturn. 
E)  One of the financial firm's competitors achieved record profits after shifting its investments from Japanese yen to U.S.dollars. 
A)  Investments in the yuan have marginally outperformed investments in the euro during the last decade. 
B)  The vast majority of Canadian voters approve of European governments and disapprove of the Chinese government. 
C)  The company currently has much more money invested in the euro than in the yuan. 
D)  Europe is showing signs of recovery,but China is showing signs of a downturn. 
E)  One of the financial firm's competitors achieved record profits after shifting its investments from Japanese yen to U.S.dollars.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Stephen got his paycheque on Friday.After a good time at the ballgame on Saturday,he purchased some groceries,rented a video,and made his car payment.This illustrates the ________ function of money.

Accepted Answer

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

Question 12

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 13

When the Bank of Canada wants to increase the money supply,it

Accepted Answer

A)  raises the reserve requirement. 
B)  sells government securities. 
C)  buys government securities. 
D)  increase the bank rate. 
E)  allows more credit cards to be produced. 
A)  raises the reserve requirement. 
B)  sells government securities. 
C)  buys government securities. 
D)  increase the bank rate. 
E)  allows more credit cards to be produced.

Question 14

Ken and Tina have decided to put $10 in a jar every week until they have saved enough to buy a new dining room set.How are they primarily using this money?

Accepted Answer

A)  As a unit of account 
B)  As a store of value 
C)  As a source of currency 
D)  As a standard of value 
E)  As a medium of exchange 
A)  As a unit of account 
B)  As a store of value 
C)  As a source of currency 
D)  As a standard of value 
E)  As a medium of exchange

Question 15

Gold satisfies the requirements of portability,divisibility,durability,and stability better than paper money does.

Accepted Answer

A) True 
 B)False

Question 16

List the three functions of money.

Accepted Answer

Medium of exchange,s

Question 17

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

Accepted Answer

- chartered banks: privately owned,profi

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Devaluing a country's currency decreases its exchange value,and this will make it less expensive for other countries to buy the home country's products.

Accepted Answer

A) True 
 B)False

Question 20

Banks are permitted to own securities dealers.

Accepted Answer

A) True 
 B)False

A personal chequing account represents demand deposits because the bank must pay "on demand" to the person receiving the cheque.

Which of the following is contained in the M-1 measurement of the money supply?

A corporation selling bonds to investors will often use a __________ to protect the bondholders' interests.

The United Nations agency that provides only a limited scope of financial services,such as funding national improvements in undeveloped countries,is the

Currency exchange,letters of credit,and banker's acceptances all relate to a bank's international services.

According to the Big Mac index,

If the Bank of Canada wants to increase the money supply,it will purchase government securities.

Describe the functions of the Bank of Canada and describe the tools it uses to control the money supply.

A financial firm is thinking about discontinuing its foreign currency investments in the euro in favor of the yuan in order to increase its profits.If the following facts were known,which one would MOST weaken this idea?

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

Stephen got his paycheque on Friday.After a good time at the ballgame on Saturday,he purchased some groceries,rented a video,and made his car payment.This illustrates the ________ function of money.

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

When the Bank of Canada wants to increase the money supply,it

Ken and Tina have decided to put $10 in a jar every week until they have saved enough to buy a new dining room set.How are they primarily using this money?

Gold satisfies the requirements of portability,divisibility,durability,and stability better than paper money does.

List the three functions of money.

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

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

Devaluing a country's currency decreases its exchange value,and this will make it less expensive for other countries to buy the home country's products.

Banks are permitted to own securities dealers.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Securities and Investments

Financial Decisions and Risk Management

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Exam 18: Understanding Money and Banking

A personal chequing account represents demand deposits because the bank must pay "on demand" to the person receiving the cheque.

Which of the following is contained in the M-1 measurement of the money supply?

A corporation selling bonds to investors will often use a __________ to protect the bondholders' interests.

The United Nations agency that provides only a limited scope of financial services,such as funding national improvements in undeveloped countries,is the

Currency exchange,letters of credit,and banker's acceptances all relate to a bank's international services.

According to the Big Mac index,

If the Bank of Canada wants to increase the money supply,it will purchase government securities.

Describe the functions of the Bank of Canada and describe the tools it uses to control the money supply.

A financial firm is thinking about discontinuing its foreign currency investments in the euro in favor of the yuan in order to increase its profits.If the following facts were known,which one would MOST weaken this idea?

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

Stephen got his paycheque on Friday.After a good time at the ballgame on Saturday,he purchased some groceries,rented a video,and made his car payment.This illustrates the ________ function of money.

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

When the Bank of Canada wants to increase the money supply,it

Ken and Tina have decided to put $10 in a jar every week until they have saved enough to buy a new dining room set.How are they primarily using this money?

Gold satisfies the requirements of portability,divisibility,durability,and stability better than paper money does.

List the three functions of money.

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

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

Devaluing a country's currency decreases its exchange value,and this will make it less expensive for other countries to buy the home country's products.

Banks are permitted to own securities dealers.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters