FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: Money and Banking

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 101

Essay

Review LaterAdd Note

Review Later

Summarize the changes in banking that have occurred over the past decade or so.

Correct Answer

verified

Deregulation is one major change. Banks ...

View Answer

Show Answer

Question 102

Short Answer

Review LaterAdd Note

Review Later

The main function of financial institutions is to offer trust services. create money. provide loans to small businesses. offer chequing and savings accounts. facilitate the flow of money from sectors with surpluses to those with deficits.

Correct Answer

verified

facilitate the flow ...

View Answer

Show Answer

Question 103

Short Answer

Review LaterAdd Note

A pool of funds managed to provide retirement income for its members is called a(n) trust service. insurance company. finance company. factoring company. pension fund.

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

In Canada, the value of goods bought with credit cards each year is about $180 million. $980 million. $30 billion. $150 billion. $1.2 trillion.

When a bank makes your monthly bill payments and manages your investment portfolio, this is known as a trust service. a smart card. an ABM. a direct deposit. a point-of-sale transfer.

About 3 percent of Canadian banknotes in circulation are counterfeit.

Banks expand the money supply by opening new chequing accounts. earning higher profits. paying interest on accounts. printing money. taking in deposits and lending money.

If Sally says she has purchased $250.00 worth of groceries, she is referring to money as a unit of account. a method of divisibility. a medium of exchange. a store of value. a measure of stability.

Which of the following is not included in either M-1 or M-2? CDs Time deposits Savings accounts Credit cards Chequing accounts

Stephen got his paycheque on Friday. After a good time at the ballgame on Saturday, he purchased some groceries, rented a video, and made his car payment. This illustrates the ________ function of money. store of value basis for banking system medium of exchange payment for labour unit of account

When the value of the Canadian dollar is less than the U.S. dollar, Canadian companies are more interested in buying American companies. Big Macs are more expensive in Canada than the United States. American companies become more interested in buying Canadian companies. the overall supply and demand of the Canadian dollar is in equilibrium. American companies become less interested in buying Canadian companies.

Which of the following influences the value of money? The supply of money Barter Durability Divisibility Portability

Which of the following is contained in the M-1 measurement of the money supply? The number of new automobiles produced in the nation Currency and demand deposits Credit card cash advances The number of new homes started in the month Time deposits

The main purpose of the Bank of Canada is to set prime interest rates. assist in the merger of troubled banks with healthier institutions. bail out banks like the Northland and CCB. deregulate the banking industry. control the nation's money supply.

The interest rate available to a bank's most creditworthy customers is the discount rate. optimal rate. key rate. funds rate. prime rate.

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

Identify the components of the M-1 money supply.

What is a letter of credit?