Question 1

What term identifies a bank's promise to pay a foreign business firm (e.g., German firm) a certain amount if the specified conditions are met?
Bank loan
Letter of credit
Promissory note
Deposit
Electronic funds transfer

Accepted Answer

The answer of What term identifies a bank's promise to...

Question 2

The principal source of short-term loans for business firms is
contractual savings institutions.
trust companies.
chartered banks.
investment companies.
loans from relatives of the owners.

Accepted Answer

The answer of The principal source of short-term loans for...

Question 3

Canada has a ________ banking system.
multi-sectoral
governmental
unitary
bilingual
branch

Accepted Answer

The answer of Canada has a ________ banking system.
multi-sectoral
governmental
unitary
bilingual
branch...

Question 4

The prime rate of interest is the rate charged
on time deposits.
on consumer installment loans.
to major business customers.
on mortgages.
to the most risky borrowers.

Accepted Answer

The answer of The prime rate of interest is the...

Question 5

Terri will be going to Ireland next week. She would be wise to arrange for a(n) ________ prior to leaving so that she can withdraw cash and transfer money between bank accounts on her trip.
e-card
smart card
debit card
NetCash
e-cash

Accepted Answer

The answer of Terri will be going to Ireland next...

Question 6

Deregulation of banks has caused banks to
decrease the amount of funds they lend to small business.
abandon plans for expansion into foreign markets.
stop issuing commercial paper.
increase their level of foreign ownership.
diversify to provide a wider array of financial products to their clients.

Accepted Answer

The answer of Deregulation of banks has caused banks to
decrease...

Question 7

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.

Accepted Answer

The answer of The main function of financial institutions is...

Question 8

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

Accepted Answer

The answer of The interest rate available to a bank's...

Question 9

Which of the following is correct regarding credit cards?
They are a store of value.
They are not a money substitute.
They are a permanent medium of exchange.
They are becoming more important but are still not a major factor in the purchase of consumer goods.
They are often referred to as "plastic money."

Accepted Answer

The answer of Which of the following is correct regarding...

Question 10

When credit and debit card information is embedded in smartphones, you have
a mobile digital wallet.
a system which is designed to allow hackers to steal your money.
a smart card.
a point-of-sale transfer system.
a debit card

Accepted Answer

The answer of When credit and debit card information is...

Question 11

A ________ is a privately owned, profit-seeking firm that serves individuals, non-business organizations, and businesses as a financial intermediary.
pension fund
credit union
chartered bank
trustee
trust company

Accepted Answer

The answer of A ________ is a privately owned, profit-seeking...

Question 12

Canadian Heritage, an investment company that groups together pools of assets, showed an average return of 44% for the last three months. Canadian Heritage set up ________ for its investors.
time deposits
money market mutual funds
demand deposits
hedge funds
term deposits

Accepted Answer

The answer of Canadian Heritage, an investment company that groups...

Question 13

A card that allows an individual to transfer money between bank accounts is a(n)
smart card.
E-card.
NetCash.
E-cash.
debit card.

Accepted Answer

The answer of A card that allows an individual to...

Question 14

There are about ________ debit card transactions each year on the Interac network.
3 million
100 million
500 million
2 billion
4 billion

Accepted Answer

The answer of There are about ________ debit card transactions...

Question 15

Which of the following changes have occurred in banking because of deregulation?
Large business firms have increased their reliance on bank loans.
Banks can now make whatever profits they can manage.
Banks are providing a narrower and more highly focused array of financial products to their customers than they did before deregulation.
Banks have increased the training given to employees.
Bank profits are now being sent to foreign financial companies.

Accepted Answer

The answer of Which of the following changes have occurred...

Question 16

Which of the following is not one of the "four financial pillars"?
Investment dealers
Life insurance companies
Credit card companies
Trust companies
Chartered banks

Accepted Answer

The answer of Which of the following is not one...

Question 17

Sally opened a small boutique. Unfortunately, she had no credit and her suppliers wished to be paid immediately. Sally did not like to carry cash, so she paid by
writing cheques on her term deposit account.
writing cheques on her demand deposit account.
using a banker's acceptance.
writing a promissory note.
using a letter of credit.

Accepted Answer

The answer of Sally opened a small boutique. Unfortunately, she...

Question 18

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.

Accepted Answer

The answer of When a bank makes your monthly bill...

Question 19

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

Accepted Answer

The answer of Which of the following statements about chartered...

Question 20

The largest bank in Canada (in terms of sales revenue) is
Canadian Imperial Bank of Commerce
Bank of Montreal
Toronto-Dominion Bank
Royal Bank of Canada
National Bank

Accepted Answer

The answer of The largest bank in Canada (in terms...

Quiz 14: Money and Banking

What term identifies a bank's promise to pay a foreign business firm (e.g., German firm) a certain amount if the specified conditions are met? Bank loan Letter of credit Promissory note Deposit Electronic funds transfer

The principal source of short-term loans for business firms is contractual savings institutions. trust companies. chartered banks. investment companies. loans from relatives of the owners.

Canada has a ________ banking system. multi-sectoral governmental unitary bilingual branch

The prime rate of interest is the rate charged on time deposits. on consumer installment loans. to major business customers. on mortgages. to the most risky borrowers.

Terri will be going to Ireland next week. She would be wise to arrange for a(n) ________ prior to leaving so that she can withdraw cash and transfer money between bank accounts on her trip. e-card smart card debit card NetCash e-cash

Deregulation of banks has caused banks to decrease the amount of funds they lend to small business. abandon plans for expansion into foreign markets. stop issuing commercial paper. increase their level of foreign ownership. diversify to provide a wider array of financial products to their clients.

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.

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

When credit and debit card information is embedded in smartphones, you have a mobile digital wallet. a system which is designed to allow hackers to steal your money. a smart card. a point-of-sale transfer system. a debit card

A ________ is a privately owned, profit-seeking firm that serves individuals, non-business organizations, and businesses as a financial intermediary. pension fund credit union chartered bank trustee trust company

Canadian Heritage, an investment company that groups together pools of assets, showed an average return of 44% for the last three months. Canadian Heritage set up ________ for its investors. time deposits money market mutual funds demand deposits hedge funds term deposits

A card that allows an individual to transfer money between bank accounts is a(n) smart card. E-card. NetCash. E-cash. debit card.

There are about ________ debit card transactions each year on the Interac network. 3 million 100 million 500 million 2 billion 4 billion

Which of the following is not one of the "four financial pillars"? Investment dealers Life insurance companies Credit card companies Trust companies Chartered banks

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.

The largest bank in Canada (in terms of sales revenue) is Canadian Imperial Bank of Commerce Bank of Montreal Toronto-Dominion Bank Royal Bank of Canada National Bank