Question 1

What term identifies a bank's promise to pay a specified amount of money at a future date?

Accepted Answer

A)  Bankers' acceptance 
B)  Electronic funds transfer 
C)  Promissory note 
D)  Bank loan 
E)  Letter of credit 
A)  Bankers' acceptance 
B)  Electronic funds transfer 
C)  Promissory note 
D)  Bank loan 
E)  Letter of credit

Question 2

The characteristics of money are

Accepted Answer

A)  divisible,interchangeable,portable,and exchangeable. 
B)  durable,paper,coin,and stable. 
C)  interchangeable,divisible,paper,and banks. 
D)  durable,divisible,stable,and portable. 
E)  portable,divisible,durable,and interchangeable. 
A)  divisible,interchangeable,portable,and exchangeable. 
B)  durable,paper,coin,and stable. 
C)  interchangeable,divisible,paper,and banks. 
D)  durable,divisible,stable,and portable. 
E)  portable,divisible,durable,and interchangeable.

Question 3

The value of goods bought with credit cards in Canada in 2012 was

Accepted Answer

A)  $500 million. 
B)  $1 billion. 
C)  $100 billion. 
D)  300 billion. 
E)  $1 trillion. 
A)  $500 million. 
B)  $1 billion. 
C)  $100 billion. 
D)  300 billion. 
E)  $1 trillion.

Question 4

A government may ________ its currency to correct its balance-of-payments conditions.

Accepted Answer

A)  regulate 
B)  devalue 
C)  reconvert 
D)  recentre 
E)  interpolate 
A)  regulate 
B)  devalue 
C)  reconvert 
D)  recentre 
E)  interpolate

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A ________ company shares risks with its policyholders in return for payment of a premium.

Accepted Answer

A)  life insurance 
B)  venture capital 
C)  credit union 
D)  sales finance 
E)  factoring 
A)  life insurance 
B)  venture capital 
C)  credit union 
D)  sales finance 
E)  factoring

Question 7

Joe is a research economist for the Royal Bank.His most reliable measure of money would be

Accepted Answer

A)  currency plus demand deposits. 
B)  M-2. 
C)  demand deposits. 
D)  M-1. 
E)  currency. 
A)  currency plus demand deposits. 
B)  M-2. 
C)  demand deposits. 
D)  M-1. 
E)  currency.

Question 8

Which of the following is not part of the M-1 money supply?

Accepted Answer

A)  Credit cards 
B)  Currency 
C)  Demand deposits 
D)  Cheques 
E)  All of these 
A)  Credit cards 
B)  Currency 
C)  Demand deposits 
D)  Cheques 
E)  All of these

Question 9

What is included in the M-1 measurement of the money supply? In M-2?

Accepted Answer

- M-1: only the most liquid fo

Question 10

Describe the changes that have taken place in banking as a result of deregulation.

Accepted Answer

- banks are shifting away from their his

Question 11

Sally opened a small boutique; unfortunately,she had no credit and her suppliers wished to be paid immediately.Sally did not like to carry cash,so she paid by

Accepted Answer

A)  writing cheques on her term deposit account. 
B)  writing cheques on her demand deposit account. 
C)  using a banker's acceptance. 
D)  writing a promissory note. 
E)  using a letter of credit. 
A)  writing cheques on her term deposit account. 
B)  writing cheques on her demand deposit account. 
C)  using a banker's acceptance. 
D)  writing a promissory note. 
E)  using a letter of credit.

Question 12

Modern paper currency is light and easy to handle,thus meeting the criterion of

Accepted Answer

A)  portability. 
B)  durability. 
C)  divisibility. 
D)  valuable. 
E)  stability. 
A)  portability. 
B)  durability. 
C)  divisibility. 
D)  valuable. 
E)  stability.

Question 13

What are the four characteristics of money?

Accepted Answer

Portability,divisibi

Question 14

Which term identifies companies that specialize in loans to businesses and consumers?

Accepted Answer

A)  Business Development Bank of Canada 
B)  Finance companies 
C)  Trust services 
D)  Mutual savings banks 
E)  Credit unions 
A)  Business Development Bank of Canada 
B)  Finance companies 
C)  Trust services 
D)  Mutual savings banks 
E)  Credit unions

Question 15

Which of the following might the Bank of Canada do to increase the money supply?

Accepted Answer

A)  Sell government securities 
B)  Increase the bank rate 
C)  Impose a new tax 
D)  Buy government securities 
E)  Increase the reserve rate 
A)  Sell government securities 
B)  Increase the bank rate 
C)  Impose a new tax 
D)  Buy government securities 
E)  Increase the reserve rate

Question 16

What is "ecash"?

Accepted Answer

A)  The same thing as a demand deposit 
B)  Money that moves along multiple channels of consumers and businesses via digital electronic transmissions 
C)  A type of plastic money that immediately reduces the balance in the user's bank account when it is used 
D)  An electronic purse that can be programmed with electronic money at ATM machines 
E)  None of these 
A)  The same thing as a demand deposit 
B)  Money that moves along multiple channels of consumers and businesses via digital electronic transmissions 
C)  A type of plastic money that immediately reduces the balance in the user's bank account when it is used 
D)  An electronic purse that can be programmed with electronic money at ATM machines 
E)  None of these

Question 17

What is a smart card?

Accepted Answer

a smart card is a plastic card

Question 18

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.

Accepted Answer

A)  time deposits 
B)  money market mutual funds 
C)  demand deposits 
D)  hedge funds 
E)  term deposits 
A)  time deposits 
B)  money market mutual funds 
C)  demand deposits 
D)  hedge funds 
E)  term deposits

Question 19

Money held by a financial institution that requires notice prior to making a withdrawal and that 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 20

A sales finance company finances installment purchases only for consumers,not businesses.

Accepted Answer

A) True 
 B)False

What term identifies a bank's promise to pay a specified amount of money at a future date?

The characteristics of money are

The value of goods bought with credit cards in Canada in 2012 was

A government may ________ its currency to correct its balance-of-payments conditions.

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

A ________ company shares risks with its policyholders in return for payment of a premium.

Joe is a research economist for the Royal Bank.His most reliable measure of money would be

Which of the following is not part of the M-1 money supply?

What is included in the M-1 measurement of the money supply? In M-2?

Describe the changes that have taken place in banking as a result of deregulation.

Sally opened a small boutique; unfortunately,she had no credit and her suppliers wished to be paid immediately.Sally did not like to carry cash,so she paid by

Modern paper currency is light and easy to handle,thus meeting the criterion of

What are the four characteristics of money?

Which term identifies companies that specialize in loans to businesses and consumers?

Which of the following might the Bank of Canada do to increase the money supply?

What is "ecash"?

What is a smart card?

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.

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

A sales finance company finances installment purchases only for consumers,not businesses.

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

What term identifies a bank's promise to pay a specified amount of money at a future date?

The characteristics of money are

The value of goods bought with credit cards in Canada in 2012 was

A government may ________ its currency to correct its balance-of-payments conditions.

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

A ________ company shares risks with its policyholders in return for payment of a premium.

Joe is a research economist for the Royal Bank.His most reliable measure of money would be

Which of the following is not part of the M-1 money supply?

What is included in the M-1 measurement of the money supply? In M-2?

Describe the changes that have taken place in banking as a result of deregulation.

Sally opened a small boutique; unfortunately,she had no credit and her suppliers wished to be paid immediately.Sally did not like to carry cash,so she paid by

Modern paper currency is light and easy to handle,thus meeting the criterion of

What are the four characteristics of money?

Which term identifies companies that specialize in loans to businesses and consumers?

Which of the following might the Bank of Canada do to increase the money supply?

What is "ecash"?

What is a smart card?

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.

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

A sales finance company finances installment purchases only for consumers,not businesses.

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