Question 1

Because the Canadian dollar varies only slightly over time in its ability to purchase goods,it is considered

Accepted Answer

A)  divisible. 
B)  stable. 
C)  valuable. 
D)  portable. 
E)  durable. 
A)  divisible. 
B)  stable. 
C)  valuable. 
D)  portable. 
E)  durable.

Question 2

A pool of funds managed to provide retirement income for its members is called a(n)

Accepted Answer

A)  trust service. 
B)  insurance company. 
C)  finance company. 
D)  factoring company. 
E)  pension fund. 
A)  trust service. 
B)  insurance company. 
C)  finance company. 
D)  factoring company. 
E)  pension fund.

Question 3

M-1 is a more reliable measure of money supply than M-2.

Accepted Answer

A) True 
 B)False

Question 4

When the Bank of Canada wants to stimulate business activity and increase the money supply,it

Accepted Answer

A)  buys government securities. 
B)  raises the reserve requirement. 
C)  decreases government spending. 
D)  raises the bank rate. 
E)  does none of these things. 
A)  buys government securities. 
B)  raises the reserve requirement. 
C)  decreases government spending. 
D)  raises the bank rate. 
E)  does none of these things.

Question 5

Identify the components of the M-1 money supply.

Accepted Answer

Currency a

Question 6

The law of one price says that identical products should sell for the same price in all countries,except for those countries that have a large agricultural sector.

Accepted Answer

A) True 
 B)False

Question 7

An order instructing the bank to pay a given sum to a specified person or firm is

Accepted Answer

A)  a time deposit. 
B)  currency. 
C)  a bank rate. 
D)  a term deposit. 
E)  a cheque. 
A)  a time deposit. 
B)  currency. 
C)  a bank rate. 
D)  a term deposit. 
E)  a cheque.

Question 8

The value of the Canadian dollar

Accepted Answer

A)  is valued always at the same exchange rate. 
B)  typically trades above the U.S.dollar. 
C)  is typically valued at par with the U.S.dollar. 
D)  reflects the overall supply and demand for Canadian dollars both at home and abroad. 
E)  none of these. 
A)  is valued always at the same exchange rate. 
B)  typically trades above the U.S.dollar. 
C)  is typically valued at par with the U.S.dollar. 
D)  reflects the overall supply and demand for Canadian dollars both at home and abroad. 
E)  none of these.

Question 9

How are factoring companies and financial corporations different?

Accepted Answer

Factoring companies buy accounts receiva

Question 10

Without money,we would be bogged down in a system of barter.This illustrates the ________ function of money.

Accepted Answer

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

Question 11

The five largest Schedule A banks account for about 90% of total bank assets in Canada.

Accepted Answer

A) True 
 B)False

Question 12

________ provides funds for new or expanding firms thought to have significant potential and may demand an ownership stake in the business.

Accepted Answer

A)  A pension fund 
B)  The International Monetary Fund (IMF) 
C)  A chartered bank 
D)  A global bank 
E)  A venture capital firm 
A)  A pension fund 
B)  The International Monetary Fund (IMF) 
C)  A chartered bank 
D)  A global bank 
E)  A venture capital firm

Question 13

Explain the law of one price and the term "Big Mac Currencies."

Accepted Answer

- the law of one price is a method of de

Question 14

Wealth is

Accepted Answer

A)  the value of everything you own. 
B)  the total amount of cash you hold. 
C)  how many children you have. 
D)  the total of all your savings. 
E)  the value of your portfolio. 
A)  the value of everything you own. 
B)  the total amount of cash you hold. 
C)  how many children you have. 
D)  the total of all your savings. 
E)  the value of your portfolio.

Question 15

What is M-2 and what are the major elements that make it up?

Accepted Answer

- measure of money supply that

Question 16

Banks are now making a larger proportion of their profits from fees than they formerly did,and this is blurring the traditional boundary between banks and securities firms.

Accepted Answer

A) True 
 B)False

Question 17

One function of investment dealers is to

Accepted Answer

A)  manage pensions for large Canadian corporations. 
B)  create stability in the money supply. 
C)  provide equity start-up loans for small business. 
D)  underwrite new stock and bond issues. 
E)  provide debt financing to small businesses. 
A)  manage pensions for large Canadian corporations. 
B)  create stability in the money supply. 
C)  provide equity start-up loans for small business. 
D)  underwrite new stock and bond issues. 
E)  provide debt financing to small businesses.

Question 18

A dollar can be exchanged for four quarters,thus demonstrating that it is

Accepted Answer

A)  durable. 
B)  stable. 
C)  divisible. 
D)  portable. 
E)  valuable. 
A)  durable. 
B)  stable. 
C)  divisible. 
D)  portable. 
E)  valuable.

Question 19

What are open-market operations?

Accepted Answer

Open-market operations are the

Question 20

Which of the following accounts for nearly all of Canada's money supply?

Accepted Answer

A)  M-1 
B)  Currency 
C)  Demand deposits 
D)  Currency plus demand deposits 
E)  M-2 
A)  M-1 
B)  Currency 
C)  Demand deposits 
D)  Currency plus demand deposits 
E)  M-2

Because the Canadian dollar varies only slightly over time in its ability to purchase goods,it is considered

A pool of funds managed to provide retirement income for its members is called a(n)

M-1 is a more reliable measure of money supply than M-2.

When the Bank of Canada wants to stimulate business activity and increase the money supply,it

Identify the components of the M-1 money supply.

The law of one price says that identical products should sell for the same price in all countries,except for those countries that have a large agricultural sector.

An order instructing the bank to pay a given sum to a specified person or firm is

The value of the Canadian dollar

How are factoring companies and financial corporations different?

Without money,we would be bogged down in a system of barter.This illustrates the ________ function of money.

The five largest Schedule A banks account for about 90% of total bank assets in Canada.

________ provides funds for new or expanding firms thought to have significant potential and may demand an ownership stake in the business.

Explain the law of one price and the term "Big Mac Currencies."

Wealth is

What is M-2 and what are the major elements that make it up?

Banks are now making a larger proportion of their profits from fees than they formerly did,and this is blurring the traditional boundary between banks and securities firms.

One function of investment dealers is to

A dollar can be exchanged for four quarters,thus demonstrating that it is

What are open-market operations?

Which of the following accounts for nearly all of Canada's money supply?

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

Because the Canadian dollar varies only slightly over time in its ability to purchase goods,it is considered

A pool of funds managed to provide retirement income for its members is called a(n)

M-1 is a more reliable measure of money supply than M-2.

When the Bank of Canada wants to stimulate business activity and increase the money supply,it

Identify the components of the M-1 money supply.

The law of one price says that identical products should sell for the same price in all countries,except for those countries that have a large agricultural sector.

An order instructing the bank to pay a given sum to a specified person or firm is

The value of the Canadian dollar

How are factoring companies and financial corporations different?

Without money,we would be bogged down in a system of barter.This illustrates the ________ function of money.

The five largest Schedule A banks account for about 90% of total bank assets in Canada.

________ provides funds for new or expanding firms thought to have significant potential and may demand an ownership stake in the business.

Explain the law of one price and the term "Big Mac Currencies."

Wealth is

What is M-2 and what are the major elements that make it up?

Banks are now making a larger proportion of their profits from fees than they formerly did,and this is blurring the traditional boundary between banks and securities firms.

One function of investment dealers is to

A dollar can be exchanged for four quarters,thus demonstrating that it is

What are open-market operations?

Which of the following accounts for nearly all of Canada's money supply?

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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