Question 1

Which of the following changes have occurred in banking because of deregulation?

Accepted Answer

A)  Large business firms have increased their reliance on bank loans.
B)  Banks can now make whatever profits they can manage.
C)  Banks are providing a narrower and more highly focused array of financial products to their customers than they did before deregulation.
D)  Banks have increased the training given to employees.
E)  Bank profits are now being sent to foreign financial companies.F) All of the above
G) C) and D)

Question 2

A financial corporation that specializes in financing installment purchases made by individuals and firms is called a

Accepted Answer

A)  consumer finance company.
B)  factoring company.
C)  credit union.
D)  sales finance company.
E)  commercial finance company.F) A) and E)
G) A) and D)

Question 3

Since a cow is large,bulky,and hard to handle,it fails to meet the money criterion of being

Accepted Answer

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

Question 4

The bank rate is the lowest rate a chartered bank charges to its borrowers.

Accepted Answer

A) True 
 B)False

Question 5

The value of the Canadian dollar

Accepted Answer

A)  is always valued at the same exchange rate.
B)  typically trades above the U.S.dollar.
C)  typically values 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.F) D) and E)
G) A) and D)

Question 6

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

Accepted Answer

A)  Investment dealers
B)  Life insurance companies
C)  Credit card companies
D)  Trust companies
E)  Chartered banksF) None of the above
G) B) and E)

Question 7

List several examples of electronic funds transfer.

Accepted Answer

Automated banking machines,dir...

Question 8

What is a letter of credit?

Accepted Answer

A promise by the ban...

Question 9

A loan backed by collateral is which of the following?

Accepted Answer

A)  Pledged
B)  Unsecured
C)  Secured
D)  Factored
E)  DefendedF) A) and B)
G) B) and C)

Question 10

The ________ makes term loans,primarily to small firms judged to have growth potential but which are unable to secure funds on reasonable terms from traditional sources.

Accepted Answer

A)  International Monetary Fund
B)  Business Development Bank of Canada
C)  Department of Business Expansion
D)  Government Pension Fund
E)  Export Development CorporationF) A) and C)
G) C) and E)

Question 11

Describe the role of life insurance companies,factoring companies,venture capital firms and pension funds in the Canadian financial system.

Accepted Answer

- Life insurance company: a mutual or st...

Question 12

The rate at which chartered banks can borrow from the Bank of Canada is called the current rate.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Large firms with excellent credit records pay the lowest rate of interest which is called the

Accepted Answer

A)  prime rate.
B)  bank rate.
C)  overnight rate.
D)  preferred rate.
E)  rediscount rate.F) All of the above
G) None of the above

Question 15

What does it mean when we say that money functions as a medium of exchange,as a store of value,and as a unit of account?

Accepted Answer

Money functions as a medium of exchange ...

Question 16

Describe the changes that have taken place in banking as a result of deregulation.

Accepted Answer

Banks are shifting away from their histo...

Question 17

In 2017,venture capital firms in Canada raised

Accepted Answer

A)  $40 million.
B)  $95 million.
C)  $507 million.
D)  $3.5 billion.
E)  $22.4 billion.F) All of the above
G) B) and E)

Question 18

All of the following are criteria for something to be considered as money except

Accepted Answer

A)  divisibility.
B)  stability.
C)  durability.
D)  portability.
E)  value.F) A) and D)
G) B) and C)

Question 19

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

One source is government granting agenci...

Question 20

If the reserve requirement was 10 percent,a $100 deposit could result in a ________ increase in new deposits for all banks in the system.

Accepted Answer

A)  $200
B)  $500
C)  $1000
D)  $10 000
E)  $100 000F) A) and E)
G) B) and E)

Exam 14: Money and Banking

Which of the following changes have occurred in banking because of deregulation?

Correct AnswerverifiedShow Answer

Describe the role of life insurance companies,factoring companies,venture capital firms and pension funds in the Canadian financial system.

Correct Answerverified- Life insurance company: a mutual or st...View AnswerShow Answer

The ________ makes term loans,primarily to small firms judged to have growth potential but which are unable to secure funds on reasonable terms from traditional sources.

Correct AnswerverifiedShow Answer

The rate at which chartered banks can borrow from the Bank of Canada is called the current rate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

List several examples of electronic funds transfer.

Correct AnswerverifiedAutomated banking machines,dir...View AnswerShow Answer

What does it mean when we say that money functions as a medium of exchange,as a store of value,and as a unit of account?

Correct AnswerverifiedMoney functions as a medium of exchange ...View AnswerShow Answer

A loan backed by collateral is which of the following?

Correct AnswerverifiedShow Answer

All of the following are criteria for something to be considered as money except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Large firms with excellent credit records pay the lowest rate of interest which is called the

Correct AnswerverifiedShow Answer

The bank rate is the lowest rate a chartered bank charges to its borrowers.

Correct AnswerverifiedShow Answer

If the reserve requirement was 10 percent,a $100 deposit could result in a ________ increase in new deposits for all banks in the system.

Correct AnswerverifiedShow Answer

In 2017,venture capital firms in Canada raised

Correct AnswerverifiedShow Answer

The value of the Canadian dollar

Correct AnswerverifiedShow Answer

Since a cow is large,bulky,and hard to handle,it fails to meet the money criterion of being

Correct AnswerverifiedShow Answer

Describe the changes that have taken place in banking as a result of deregulation.

Correct AnswerverifiedBanks are shifting away from their histo...View AnswerShow Answer

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?

Correct AnswerverifiedOne source is government granting agenci...View AnswerShow Answer

A financial corporation that specializes in financing installment purchases made by individuals and firms is called a

Correct AnswerverifiedShow Answer

What is a letter of credit?

Correct AnswerverifiedA promise by the ban...View AnswerShow Answer

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- Life insurance company: a mutual or st...
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Automated banking machines,dir...
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Money functions as a medium of exchange ...
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Banks are shifting away from their histo...
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One source is government granting agenci...
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Correct Answer
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Correct Answer
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A promise by the ban...
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