Question 1

The characteristics of money include portability,divisibility,durability,and stability.

Accepted Answer

A) True 
 B)False

Question 2

What is a letter of credit?

Accepted Answer

a promise by the ban

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

All of the following is true about credit cards except

Accepted Answer

A)  credit cards are a store of value. 
B)  credit cards are quite convenient. 
C)  2 to 5 percent of total credit-sales dollars goes to card issuers. 
D)  credit cards serve as a temporary medium of exchange. 
E)  credit cards are extremely profitable for issuing companies. 
A)  credit cards are a store of value. 
B)  credit cards are quite convenient. 
C)  2 to 5 percent of total credit-sales dollars goes to card issuers. 
D)  credit cards serve as a temporary medium of exchange. 
E)  credit cards are extremely profitable for issuing companies.

Question 5

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

Accepted Answer

A)  preferred rate. 
B)  prime rate. 
C)  prime plus 1 percent. 
D)  bond rate. 
E)  bank rate. 
A)  preferred rate. 
B)  prime rate. 
C)  prime plus 1 percent. 
D)  bond rate. 
E)  bank rate.

Question 6

Certificates of deposits (CDs)and saving certificates are classified as time deposits,which means that advance notice is required to make a withdrawal.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would not be expected when a country's currency becomes overvalued?

Accepted Answer

A)  Its export goods become too expensive. 
B)  Its high costs make the country less competitive. 
C)  Its exchange rate is higher than warranted by its economic conditions. 
D)  Fewer goods are purchased by other countries. 
E)  The costs of exported goods declines. 
A)  Its export goods become too expensive. 
B)  Its high costs make the country less competitive. 
C)  Its exchange rate is higher than warranted by its economic conditions. 
D)  Fewer goods are purchased by other countries. 
E)  The costs of exported goods declines.

Question 8

What is a reserve requirement?

Accepted Answer

The reserve requirement is the

Question 9

Money that moves among consumers and businesses via digital electronic transmissions is known as ecash.

Accepted Answer

A) True 
 B)False

Question 10

As part of deregulation,chartered banks can now sell insurance in their branches.

Accepted Answer

A) True 
 B)False

Question 11

When a bank makes your monthly bill payments and manages your investment portfolio,this is known as

Accepted Answer

A)  a trust service. 
B)  a smart card. 
C)  an ABM. 
D)  a direct deposit. 
E)  a point-of-sale transfer. 
A)  a trust service. 
B)  a smart card. 
C)  an ABM. 
D)  a direct deposit. 
E)  a point-of-sale transfer.

Question 12

The ________ makes term loans primarily to small firms judged to have growth potential but unable to secure funds on reasonable terms from traditional sources.

Accepted Answer

A)  International Monetary Fund 
B)  Business Development Bank of Canada 
C)  Department of Regional Industrial Expansion 
D)  Government pension fund 
E)  Export Development Corporation 
A)  International Monetary Fund 
B)  Business Development Bank of Canada 
C)  Department of Regional Industrial Expansion 
D)  Government pension fund 
E)  Export Development Corporation

Question 13

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 in the previous month 
B)  The number of new homes started in the month 
C)  Time deposits 
D)  Credit card balances 
E)  Cash and the money in chequing accounts 
A)  The number of new automobiles produced in the nation in the previous month 
B)  The number of new homes started in the month 
C)  Time deposits 
D)  Credit card balances 
E)  Cash and the money in chequing accounts

Question 14

Briefly explain three of the methods of electronic technologies.

Accepted Answer

- automated teller machines: automatic t

Question 15

What is a demand deposit?

Accepted Answer

Demand deposits are

Question 16

Which of the following is not in the M-2 measurement of the money supply?

Accepted Answer

A)  Currency 
B)  Time deposits 
C)  Chequing accounts 
D)  Money owed on credit cards 
E)  Money market mutual funds 
A)  Currency 
B)  Time deposits 
C)  Chequing accounts 
D)  Money owed on credit cards 
E)  Money market mutual funds

Question 17

A debit card

Accepted Answer

A)  is an identification card issued by a credit union to its members who must present the card when conducting business at the credit union. 
B)  allows the user to move money via digital electronic transmissions. 
C)  permits the holder to transfer money from his/her chequing account to the store's account. 
D)  permits the holder to purchase a product and to pay for it later. 
E)  is an identification card issued by a consumer finance company to its members who must present the card when conducting business at the company. 
A)  is an identification card issued by a credit union to its members who must present the card when conducting business at the credit union. 
B)  allows the user to move money via digital electronic transmissions. 
C)  permits the holder to transfer money from his/her chequing account to the store's account. 
D)  permits the holder to purchase a product and to pay for it later. 
E)  is an identification card issued by a consumer finance company to its members who must present the card when conducting business at the company.

Question 18

Banks expand the money supply by

Accepted Answer

A)  opening new chequing accounts. 
B)  earning higher profits. 
C)  paying interest on accounts. 
D)  printing money. 
E)  taking in deposits and lending money. 
A)  opening new chequing accounts. 
B)  earning higher profits. 
C)  paying interest on accounts. 
D)  printing money. 
E)  taking in deposits and lending money.

Question 19

The principal source of short-term loans for business firms is

Accepted Answer

A)  contractual savings institutions. 
B)  trust companies. 
C)  chartered banks. 
D)  investment companies. 
E)  loans from relatives of the owners. 
A)  contractual savings institutions. 
B)  trust companies. 
C)  chartered banks. 
D)  investment companies. 
E)  loans from relatives of the owners.

Question 20

A corporation selling bonds to investors appoints a trustee,usually a trust company,to protect the bondholders' interests.Because so many more people are now investing in stocks and bonds,trust companies are now more important than they used to be.

Accepted Answer

A) True 
 B)False

The characteristics of money include portability,divisibility,durability,and stability.

What is a letter of credit?

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

All of the following is true about credit cards except

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

Certificates of deposits (CDs)and saving certificates are classified as time deposits,which means that advance notice is required to make a withdrawal.

Which of the following would not be expected when a country's currency becomes overvalued?

What is a reserve requirement?

Money that moves among consumers and businesses via digital electronic transmissions is known as ecash.

As part of deregulation,chartered banks can now sell insurance in their branches.

When a bank makes your monthly bill payments and manages your investment portfolio,this is known as

The ________ makes term loans primarily to small firms judged to have growth potential but unable to secure funds on reasonable terms from traditional sources.

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

Briefly explain three of the methods of electronic technologies.

What is a demand deposit?

Which of the following is not in the M-2 measurement of the money supply?

A debit card

Banks expand the money supply by

The principal source of short-term loans for business firms is

A corporation selling bonds to investors appoints a trustee,usually a trust company,to protect the bondholders' interests.Because so many more people are now investing in stocks and bonds,trust companies are now more important than they used to be.

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

The characteristics of money include portability,divisibility,durability,and stability.

What is a letter of credit?

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

All of the following is true about credit cards except

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

Certificates of deposits (CDs)and saving certificates are classified as time deposits,which means that advance notice is required to make a withdrawal.

Which of the following would not be expected when a country's currency becomes overvalued?

What is a reserve requirement?

Money that moves among consumers and businesses via digital electronic transmissions is known as ecash.

As part of deregulation,chartered banks can now sell insurance in their branches.

When a bank makes your monthly bill payments and manages your investment portfolio,this is known as

The ________ makes term loans primarily to small firms judged to have growth potential but unable to secure funds on reasonable terms from traditional sources.

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

Briefly explain three of the methods of electronic technologies.

What is a demand deposit?

Which of the following is not in the M-2 measurement of the money supply?

A debit card

Banks expand the money supply by

The principal source of short-term loans for business firms is

A corporation selling bonds to investors appoints a trustee,usually a trust company,to protect the bondholders' interests.Because so many more people are now investing in stocks and bonds,trust companies are now more important than they used to be.

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