Question 1

Currency and money are the same thing.

Accepted Answer

A) True 
 B)False

Question 2

Experts are increasingly sounding a warning about mounting credit card debt.Given that,which of the following would be an unwise strategy for a credit card company?

Accepted Answer

A)  Making sure the company's credit card rules are clear and easy to understand. 
B)  Charging the same interest rate as other credit card companies. 
C)  Ensuring that fees for exceeding credit limits are no higher than necessary. 
D)  Increasing the value of the promotional items that are used to attract new credit card customers. 
E)  Offering free debt counselling to credit card customers. 
A)  Making sure the company's credit card rules are clear and easy to understand. 
B)  Charging the same interest rate as other credit card companies. 
C)  Ensuring that fees for exceeding credit limits are no higher than necessary. 
D)  Increasing the value of the promotional items that are used to attract new credit card customers. 
E)  Offering free debt counselling to credit card customers.

Question 3

A company that sells energy drinks is preparing to sell its product outside Canada.The financial officer of the company wants to expand into South America because he believes that doing so will help the company generate a consistent year-round cash flow.If the following facts were known,which one would strengthen the CFO's argument?

Accepted Answer

A)  There are many different areas of the world where energy drinks are popular. 
B)  Demand for energy drinks is greater in developed countries than in emerging markets. 
C)  The company has gotten about as much of the energy drink market share in Canada as it can reasonably hope to get. 
D)  In South America,the biggest brands dominate the energy drink market. 
E)  Energy drinks sell much better at the hottest time of the year. 
A)  There are many different areas of the world where energy drinks are popular. 
B)  Demand for energy drinks is greater in developed countries than in emerging markets. 
C)  The company has gotten about as much of the energy drink market share in Canada as it can reasonably hope to get. 
D)  In South America,the biggest brands dominate the energy drink market. 
E)  Energy drinks sell much better at the hottest time of the year.

Question 4

Compare and contrast the services offered by chartered banks and credit unions.

Accepted Answer

- chartered banks: pension services,trus

Question 5

The concept of money as "a store of value" refers to the fact that money is used to assign a relative value to goods and services.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true regarding the international payments process?

Accepted Answer

A)  Most foreign nations will never accept dollars. 
B)  Banks just do not get involved in such transactions. 
C)  Money does not actually have to flow between the two countries. 
D)  Diplomatic pouches move currency payments from one nation to another. 
E)  All of these statements are true. 
A)  Most foreign nations will never accept dollars. 
B)  Banks just do not get involved in such transactions. 
C)  Money does not actually have to flow between the two countries. 
D)  Diplomatic pouches move currency payments from one nation to another. 
E)  All of these statements are true.

Question 7

Which of the following is not a form of electronic technology for banking?

Accepted Answer

A)  Direct withdrawals 
B)  Pay-by-phone systems 
C)  Personal cheques 
D)  Smart card 
E)  Direct deposits 
A)  Direct withdrawals 
B)  Pay-by-phone systems 
C)  Personal cheques 
D)  Smart card 
E)  Direct deposits

Question 8

As of November 2011,the value of M-2 was $________.

Accepted Answer

A)  134.5 million 
B)  843.5 million 
C)  400 billion 
D)  796 billion 
E)  1.1 trillion 
A)  134.5 million 
B)  843.5 million 
C)  400 billion 
D)  796 billion 
E)  1.1 trillion

Question 9

The new chip encryption technology for credit cards (which requires an additional password)means that credit cards are now totally safe from fraud.

Accepted Answer

A) True 
 B)False

Question 10

Describe the two types of financial corporations.

Accepted Answer

- sales finance companies and consumer f

Question 11

The M-2 measurement of the money supply includes time deposits,money market mutual funds,and savings deposits.

Accepted Answer

A) True 
 B)False

Question 12

Since 1991,Canadian chartered banks have had to maintain a reserve requirement with the Bank of Canada.

Accepted Answer

A) True 
 B)False

Question 13

Describe the kinds of business firms that make up "pillar #3" of the Canadian financial system.

Accepted Answer

- life insurance companies: a mutual or

Question 14

If Sally says she has purchased $250.00 worth of groceries,she is referring to money as

Accepted Answer

A)  a unit of account. 
B)  a method of divisibility. 
C)  a medium of exchange. 
D)  a store of value. 
E)  a measure of stability. 
A)  a unit of account. 
B)  a method of divisibility. 
C)  a medium of exchange. 
D)  a store of value. 
E)  a measure of stability.

Question 15

If Chris takes the money from her paycheque and gives half of it to her landlord to pay last month's rent,how is she using the money?

Accepted Answer

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

Question 16

The World Bank funds national improvements by making loans to build roads,schools,power plants,and hospitals.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not one of the traditional "four financial pillars"?

Accepted Answer

A)  Investment dealers 
B)  Life insurance companies 
C)  Credit card companies 
D)  Trust companies 
E)  Chartered banks 
A)  Investment dealers 
B)  Life insurance companies 
C)  Credit card companies 
D)  Trust companies 
E)  Chartered banks

Question 18

A barter economy is more efficient than a money economy.

Accepted Answer

A) True 
 B)False

Question 19

What is M-1 and what are the major elements that make it up?

Accepted Answer

- Measure of money supply that

Question 20

Credit card fraud costs Canadian financial institutions about $1 billion each year.

Accepted Answer

A) True 
 B)False

Currency and money are the same thing.

Experts are increasingly sounding a warning about mounting credit card debt.Given that,which of the following would be an unwise strategy for a credit card company?

Compare and contrast the services offered by chartered banks and credit unions.

The concept of money as "a store of value" refers to the fact that money is used to assign a relative value to goods and services.

Which of the following statements is true regarding the international payments process?

Which of the following is not a form of electronic technology for banking?

As of November 2011,the value of M-2 was $________.

The new chip encryption technology for credit cards (which requires an additional password)means that credit cards are now totally safe from fraud.

Describe the two types of financial corporations.

The M-2 measurement of the money supply includes time deposits,money market mutual funds,and savings deposits.

Since 1991,Canadian chartered banks have had to maintain a reserve requirement with the Bank of Canada.

Describe the kinds of business firms that make up "pillar #3" of the Canadian financial system.

If Sally says she has purchased $250.00 worth of groceries,she is referring to money as

If Chris takes the money from her paycheque and gives half of it to her landlord to pay last month's rent,how is she using the money?

The World Bank funds national improvements by making loans to build roads,schools,power plants,and hospitals.

Which of the following is not one of the traditional "four financial pillars"?

A barter economy is more efficient than a money economy.

What is M-1 and what are the major elements that make it up?

Credit card fraud costs Canadian financial institutions about $1 billion each year.

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

Currency and money are the same thing.

Experts are increasingly sounding a warning about mounting credit card debt.Given that,which of the following would be an unwise strategy for a credit card company?

Compare and contrast the services offered by chartered banks and credit unions.

The concept of money as "a store of value" refers to the fact that money is used to assign a relative value to goods and services.

Which of the following statements is true regarding the international payments process?

Which of the following is not a form of electronic technology for banking?

As of November 2011,the value of M-2 was $________.

The new chip encryption technology for credit cards (which requires an additional password)means that credit cards are now totally safe from fraud.

Describe the two types of financial corporations.

The M-2 measurement of the money supply includes time deposits,money market mutual funds,and savings deposits.

Since 1991,Canadian chartered banks have had to maintain a reserve requirement with the Bank of Canada.

Describe the kinds of business firms that make up "pillar #3" of the Canadian financial system.

If Sally says she has purchased $250.00 worth of groceries,she is referring to money as

If Chris takes the money from her paycheque and gives half of it to her landlord to pay last month's rent,how is she using the money?

The World Bank funds national improvements by making loans to build roads,schools,power plants,and hospitals.

Which of the following is not one of the traditional "four financial pillars"?

A barter economy is more efficient than a money economy.

What is M-1 and what are the major elements that make it up?

Credit card fraud costs Canadian financial institutions about $1 billion each year.

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