Question 1

Since a salmon is large,bulky,and slippery,it fails to meet the money criterion of being

Accepted Answer

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

Question 2

The prime rate of interest is the lowest rate charged to a bank's best customers.

Accepted Answer

A) True 
 B)False

Question 3

If the Bank of Canada wants to reduce inflation,it can sell government securities.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a government supplier of funds to businesses in Canada?

Accepted Answer

A)  Federal Bureau of Government Grants 
B)  Business Development Bank of Canada 
C)  Export Development Corporation 
D)  Canada Mortgage and Housing Corporation 
E)  All of these are suppliers of funds 
A)  Federal Bureau of Government Grants 
B)  Business Development Bank of Canada 
C)  Export Development Corporation 
D)  Canada Mortgage and Housing Corporation 
E)  All of these are suppliers of funds

Question 5

The law of one price

Accepted Answer

A)  says that the supply and demand of a product must not alter its price. 
B)  says that if a retailer puts an item on sale,all other retailers must match that price. 
C)  says that identical products should sell for the same price in all countries. 
D)  is a principle suggested by Canadian economists that means that all identical products in a given economy should be sold for the same price. 
E)  is the principle that to be competitive,a company must offer its product at only one price; that is,it should not negotiate with customers about the price. 
A)  says that the supply and demand of a product must not alter its price. 
B)  says that if a retailer puts an item on sale,all other retailers must match that price. 
C)  says that identical products should sell for the same price in all countries. 
D)  is a principle suggested by Canadian economists that means that all identical products in a given economy should be sold for the same price. 
E)  is the principle that to be competitive,a company must offer its product at only one price; that is,it should not negotiate with customers about the price.

Question 6

Depending on the time of the year,salmon may be in short supply.Thus,using salmon as money violates the criterion of being

Accepted Answer

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

Question 7

What sources of funds are available to business firms in addition to the institutions that make up the "4 pillars" of the Canadian financial system?

Accepted Answer

- government financial institutions and

Question 8

Suppose that,as a small business owner,you decide to buy a new copying machine.Since you cannot afford to pay cash,you finance the machine over 12 months.The copy machine itself will serve as loan collateral.The major source of credit for this type of purchase is a(n)

Accepted Answer

A)  investment company. 
B)  sales finance company. 
C)  venture capital firm. 
D)  consumer finance company. 
E)  factoring company. 
A)  investment company. 
B)  sales finance company. 
C)  venture capital firm. 
D)  consumer finance company. 
E)  factoring company.

Question 9

Which of the following influences the value of money?

Accepted Answer

A)  The supply of money 
B)  Barter 
C)  Durability 
D)  Divisibility 
E)  Portability 
A)  The supply of money 
B)  Barter 
C)  Durability 
D)  Divisibility 
E)  Portability

Question 10

Why are banks considered to be creators of money?

Accepted Answer

- by taking in depos

Question 11

A ________ is a privately owned,profit-seeking firm that serves individuals,non-business organizations,and businesses as a financial intermediary.

Accepted Answer

A)  pension fund 
B)  credit union 
C)  chartered Bank 
D)  trustee 
E)  trust company 
A)  pension fund 
B)  credit union 
C)  chartered Bank 
D)  trustee 
E)  trust company

Question 12

Which of the following statements about chartered banks is false?

Accepted Answer

A)  A chartered bank is privately owned. 
B)  A chartered bank is profit-seeking. 
C)  Chartered banks are the main source of short-term loans for businesses. 
D)  A chartered bank is required to use funds obtained from savers to purchase portfolios of government bonds. 
E)  A chartered bank serves individuals,non-business organizations,and businesses as a financial intermediary. 
A)  A chartered bank is privately owned. 
B)  A chartered bank is profit-seeking. 
C)  Chartered banks are the main source of short-term loans for businesses. 
D)  A chartered bank is required to use funds obtained from savers to purchase portfolios of government bonds. 
E)  A chartered bank serves individuals,non-business organizations,and businesses as a financial intermediary.

Question 13

The M-1 money supply account measures only the most liquid forms of money,such as currency and demand deposits.

Accepted Answer

A) True 
 B)False

Question 14

What is the World Bank?

Accepted Answer

The World Bank is a United Nat

Question 15

Explain why beef would not make an appropriate form of currency in modern society.

Accepted Answer

- Beef is not portable: how would it be

Question 16

In 2011,credit card fraud cost financial institutions about $_________.

Accepted Answer

A)  5 million 
B)  37 million 
C)  366 million 
D)  529 million 
E)  1.2 billion 
A)  5 million 
B)  37 million 
C)  366 million 
D)  529 million 
E)  1.2 billion

Question 17

The largest Canadian bank in terms of revenue is the

Accepted Answer

A)  Canadian Imperial Bank of Commerce (CIB
C)  
B)  Bank of Montreal 
C)  Royal Bank of Canada 
D)  Bank of Nova Scotia 
E)  Toronto Dominion Bank (T
D)  
A)  Canadian Imperial Bank of Commerce (CIB
C)  
B)  Bank of Montreal 
C)  Royal Bank of Canada 
D)  Bank of Nova Scotia 
E)  Toronto Dominion Bank (T
D)

Question 18

The determination of whether a currency is overvalued or undervalued is based on a comparison with

Accepted Answer

A)  the Japanese yen. 
B)  the U.S.dollar. 
C)  the British pound. 
D)  the euro. 
E)  none of these. 
A)  the Japanese yen. 
B)  the U.S.dollar. 
C)  the British pound. 
D)  the euro. 
E)  none of these.

Question 19

Demand deposits include

Accepted Answer

A)  money in chequing accounts. 
B)  time deposits. 
C)  savings accounts. 
D)  money market mutual funds. 
E)  credit cards. 
A)  money in chequing accounts. 
B)  time deposits. 
C)  savings accounts. 
D)  money market mutual funds. 
E)  credit cards.

Question 20

The bank rate (also called the rediscount rate)is the rate at which chartered banks can borrow from the Bank of Canada.

Accepted Answer

A) True 
 B)False

Since a salmon is large,bulky,and slippery,it fails to meet the money criterion of being

The prime rate of interest is the lowest rate charged to a bank's best customers.

If the Bank of Canada wants to reduce inflation,it can sell government securities.

Which of the following is not a government supplier of funds to businesses in Canada?

The law of one price

Depending on the time of the year,salmon may be in short supply.Thus,using salmon as money violates the criterion of being

What sources of funds are available to business firms in addition to the institutions that make up the "4 pillars" of the Canadian financial system?

Suppose that,as a small business owner,you decide to buy a new copying machine.Since you cannot afford to pay cash,you finance the machine over 12 months.The copy machine itself will serve as loan collateral.The major source of credit for this type of purchase is a(n)

Which of the following influences the value of money?

Why are banks considered to be creators of money?

A ________ is a privately owned,profit-seeking firm that serves individuals,non-business organizations,and businesses as a financial intermediary.

Which of the following statements about chartered banks is false?

The M-1 money supply account measures only the most liquid forms of money,such as currency and demand deposits.

What is the World Bank?

Explain why beef would not make an appropriate form of currency in modern society.

In 2011,credit card fraud cost financial institutions about $_________.

The largest Canadian bank in terms of revenue is the

The determination of whether a currency is overvalued or undervalued is based on a comparison with

Demand deposits include

The bank rate (also called the rediscount rate)is the rate at which chartered banks can borrow from the Bank of Canada.

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

Exam 18: Understanding Money and Banking

Since a salmon is large,bulky,and slippery,it fails to meet the money criterion of being

The prime rate of interest is the lowest rate charged to a bank's best customers.

If the Bank of Canada wants to reduce inflation,it can sell government securities.

Which of the following is not a government supplier of funds to businesses in Canada?

The law of one price

Depending on the time of the year,salmon may be in short supply.Thus,using salmon as money violates the criterion of being

What sources of funds are available to business firms in addition to the institutions that make up the "4 pillars" of the Canadian financial system?

Suppose that,as a small business owner,you decide to buy a new copying machine.Since you cannot afford to pay cash,you finance the machine over 12 months.The copy machine itself will serve as loan collateral.The major source of credit for this type of purchase is a(n)

Which of the following influences the value of money?

Why are banks considered to be creators of money?

A ________ is a privately owned,profit-seeking firm that serves individuals,non-business organizations,and businesses as a financial intermediary.

Which of the following statements about chartered banks is false?

The M-1 money supply account measures only the most liquid forms of money,such as currency and demand deposits.

What is the World Bank?

Explain why beef would not make an appropriate form of currency in modern society.

In 2011,credit card fraud cost financial institutions about $_________.

The largest Canadian bank in terms of revenue is the

The determination of whether a currency is overvalued or undervalued is based on a comparison with

Demand deposits include

The bank rate (also called the rediscount rate)is the rate at which chartered banks can borrow from the Bank of Canada.

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