Question 1

Which of the following is most likely to get an unsecured loan?

Accepted Answer

A)  A retail florist shop with collateral 
B)  A wholesale grocer with a marginal credit history 
C)  A lawyer with collateral 
D)  A large manufacturing firm with an excellent credit rating 
E)  A farmer 
A)  A retail florist shop with collateral 
B)  A wholesale grocer with a marginal credit history 
C)  A lawyer with collateral 
D)  A large manufacturing firm with an excellent credit rating 
E)  A farmer

Question 2

Money is

Accepted Answer

A)  credit cards. 
B)  tokens that represent a country's resources that are accepted in every place of the world. 
C)  any object generally accepted by people as payment for goods and services. 
D)  a reward for an individual's efforts. 
E)  wealth. 
A)  credit cards. 
B)  tokens that represent a country's resources that are accepted in every place of the world. 
C)  any object generally accepted by people as payment for goods and services. 
D)  a reward for an individual's efforts. 
E)  wealth.

Question 3

A ________ company specializes in financing installment purchases made by individuals and firms.

Accepted Answer

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

Question 4

Deregulation has allowed banks to shift away from their historical role as intermediaries between depositors and borrowers.

Accepted Answer

A) True 
 B)False

Question 5

Identify the components of the M-2 money supply.

Accepted Answer

M-2 includes time deposits,mon

Question 6

In 2011,about 5 percent of Canadian bank notes were counterfeit.

Accepted Answer

A) True 
 B)False

Question 7

What caused the decline of barter as a means of obtaining something needed by a consumer?

Accepted Answer

A)  Development of the central bank 
B)  Discovery of gold 
C)  Invention of the credit card 
D)  The use of bonds 
E)  Introduction of money 
A)  Development of the central bank 
B)  Discovery of gold 
C)  Invention of the credit card 
D)  The use of bonds 
E)  Introduction of money

Question 8

Cynthia is genuinely concerned about electronic money because

Accepted Answer

A)  power failures cause information to be lost. 
B)  hackers may break into ecash systems and steal the money in them. 
C)  there are extensive rules and regulations dealing with emoney. 
D)  electronic money generates an extremely large amount of paper. 
E)  banks will generally not recognize this form of money. 
A)  power failures cause information to be lost. 
B)  hackers may break into ecash systems and steal the money in them. 
C)  there are extensive rules and regulations dealing with emoney. 
D)  electronic money generates an extremely large amount of paper. 
E)  banks will generally not recognize this form of money.

Question 9

Coins came into use sometime around 600 BCE and paper money around 1200 CE.

Accepted Answer

A) True 
 B)False

Question 10

Briefly describe the attributes an object must possess to be used as money.

Accepted Answer

- portability: must be able to take it p

Question 11

The ________ is the percentage of its deposits a bank must hold,in cash or on deposit,with a chartered bank.

Accepted Answer

A)  prime rate 
B)  open-market operation 
C)  selective credit control 
D)  reserve requirement 
E)  bank rate 
A)  prime rate 
B)  open-market operation 
C)  selective credit control 
D)  reserve requirement 
E)  bank rate

Question 12

What is ecash?

Accepted Answer

Ecash is electronic money that

Question 13

Which of the following is a form of money?

Accepted Answer

A)  Japanese yen 
B)  Bonds 
C)  A gold medallion 
D)  A Visa credit card 
E)  All of these are money 
A)  Japanese yen 
B)  Bonds 
C)  A gold medallion 
D)  A Visa credit card 
E)  All of these are money

Question 14

Some members of the Palau government want to ask the World Bank to help fund economic development,rather than focus on short-term monetary stimulation.Which of the following would strengthen the case for this course of action?

Accepted Answer

A)  Palau has come under criticism in the United Nations for alleged human rights abuses. 
B)  Palau has been able to grow enough food to export to surrounding nations. 
C)  Corruption is a major problem among Palau's government officials. 
D)  Palau needs humanitarian aid due to a recent volcanic eruption. 
E)  Palau suffers from widespread poverty. 
A)  Palau has come under criticism in the United Nations for alleged human rights abuses. 
B)  Palau has been able to grow enough food to export to surrounding nations. 
C)  Corruption is a major problem among Palau's government officials. 
D)  Palau needs humanitarian aid due to a recent volcanic eruption. 
E)  Palau suffers from widespread poverty.

Question 15

Financing new,untested businesses is risky,so the easiest route to financing would be to go to ________

Accepted Answer

A)  a venture capital firm. 
B)  the Economic Development Bank. 
C)  an institutional lender. 
D)  the Industrial Development Bank. 
E)  a brokerage house. 
A)  a venture capital firm. 
B)  the Economic Development Bank. 
C)  an institutional lender. 
D)  the Industrial Development Bank. 
E)  a brokerage house.

Question 16

What feature of a credit union makes it different from all the other financial institutions?

Accepted Answer

a credit union provides financ

Question 17

Money lets you measure the relative values of goods and services.In so doing,money is performing which of the following functions?

Accepted Answer

A)  Store of value 
B)  Medium of exchange 
C)  Determination factor 
D)  Monetary flagging 
E)  Unit of account 
A)  Store of value 
B)  Medium of exchange 
C)  Determination factor 
D)  Monetary flagging 
E)  Unit of account

Question 18

The group of 188 nations that have combined resources to promote stable exchange rates,provide temporary short-term loans,and serve other purposes is the

Accepted Answer

A)  International Monetary Fund (IMF). 
B)  Bank of Canada. 
C)  Global Bank. 
D)  Interbank Bank. 
E)  World Bank. 
A)  International Monetary Fund (IMF). 
B)  Bank of Canada. 
C)  Global Bank. 
D)  Interbank Bank. 
E)  World Bank.

Question 19

Which of the following is correct regarding credit cards?

Accepted Answer

A)  They are a store of value. 
B)  They are not a money substitute. 
C)  They are a permanent medium of exchange. 
D)  They are becoming more important but are still not a major factor in the purchase of consumer goods. 
E)  They are often referred to as "plastic money." 
A)  They are a store of value. 
B)  They are not a money substitute. 
C)  They are a permanent medium of exchange. 
D)  They are becoming more important but are still not a major factor in the purchase of consumer goods. 
E)  They are often referred to as "plastic money."

Question 20

When a business has a secured loan and is unable to pay the loan back,a bank may

Accepted Answer

A)  take back the loan. 
B)  allow them two years to come up with the money to pay back the loan. 
C)  confiscate and sell the collateral that was put up for the loan. 
D)  make them work at the bank until they have made enough money to pay back the loan. 
E)  do nothing. 
A)  take back the loan. 
B)  allow them two years to come up with the money to pay back the loan. 
C)  confiscate and sell the collateral that was put up for the loan. 
D)  make them work at the bank until they have made enough money to pay back the loan. 
E)  do nothing.

Which of the following is most likely to get an unsecured loan?

Money is

A ________ company specializes in financing installment purchases made by individuals and firms.

Deregulation has allowed banks to shift away from their historical role as intermediaries between depositors and borrowers.

Identify the components of the M-2 money supply.

In 2011,about 5 percent of Canadian bank notes were counterfeit.

What caused the decline of barter as a means of obtaining something needed by a consumer?

Cynthia is genuinely concerned about electronic money because

Coins came into use sometime around 600 BCE and paper money around 1200 CE.

Briefly describe the attributes an object must possess to be used as money.

The ________ is the percentage of its deposits a bank must hold,in cash or on deposit,with a chartered bank.

What is ecash?

Which of the following is a form of money?

Some members of the Palau government want to ask the World Bank to help fund economic development,rather than focus on short-term monetary stimulation.Which of the following would strengthen the case for this course of action?

Financing new,untested businesses is risky,so the easiest route to financing would be to go to ________

What feature of a credit union makes it different from all the other financial institutions?

Money lets you measure the relative values of goods and services.In so doing,money is performing which of the following functions?

The group of 188 nations that have combined resources to promote stable exchange rates,provide temporary short-term loans,and serve other purposes is the

Which of the following is correct regarding credit cards?

When a business has a secured loan and is unable to pay the loan back,a bank may

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

Which of the following is most likely to get an unsecured loan?

Money is

A ________ company specializes in financing installment purchases made by individuals and firms.

Deregulation has allowed banks to shift away from their historical role as intermediaries between depositors and borrowers.

Identify the components of the M-2 money supply.

In 2011,about 5 percent of Canadian bank notes were counterfeit.

What caused the decline of barter as a means of obtaining something needed by a consumer?

Cynthia is genuinely concerned about electronic money because

Coins came into use sometime around 600 BCE and paper money around 1200 CE.

Briefly describe the attributes an object must possess to be used as money.

The ________ is the percentage of its deposits a bank must hold,in cash or on deposit,with a chartered bank.

What is ecash?

Which of the following is a form of money?

Some members of the Palau government want to ask the World Bank to help fund economic development,rather than focus on short-term monetary stimulation.Which of the following would strengthen the case for this course of action?

Financing new,untested businesses is risky,so the easiest route to financing would be to go to ________

What feature of a credit union makes it different from all the other financial institutions?

Money lets you measure the relative values of goods and services.In so doing,money is performing which of the following functions?

The group of 188 nations that have combined resources to promote stable exchange rates,provide temporary short-term loans,and serve other purposes is the

Which of the following is correct regarding credit cards?

When a business has a secured loan and is unable to pay the loan back,a bank may

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