Question 1

The value of bitcoins on various exchanges fluctuates dramatically. This makes bitcoin look less like a currency and more like which of the following?

Accepted Answer

A)  a scam 
B)  a risky way to pay 
C)  a speculative investment 
D)  a way for governments to catch criminals 
A)  a scam 
B)  a risky way to pay 
C)  a speculative investment 
D)  a way for governments to catch criminals C

Question 2

Why does Laura keep only $100,000 combined in her savings and chequing accounts at TD Bank?

Accepted Answer

A)  any more will not earn additional interest 
B)  her bank prohibits her from depositing more 
C)  her fees will be significantly higher if more money is deposited 
D)  this is the maximum amount insured per depositor 
A)  any more will not earn additional interest 
B)  her bank prohibits her from depositing more 
C)  her fees will be significantly higher if more money is deposited 
D)  this is the maximum amount insured per depositor D

Question 3

Who controls the Bank of Canada?

Accepted Answer

A)  no one; it is an independent institution 
B)  the prime minister 
C)  the house of commons 
D)  the government cabinet 
A)  no one; it is an independent institution 
B)  the prime minister 
C)  the house of commons 
D)  the government cabinet A

Question 4

Canada trades a shipment of wheat to Saudi Arabia in exchange for a shipment of oil. What is this type of arrangement called?

Accepted Answer

A)  barter 
B)  a monetary exchange 
C)  an interchange 
D)  interstate commerce 
A)  barter 
B)  a monetary exchange 
C)  an interchange 
D)  interstate commerce

Question 5

M1 and M2 are both measures of which of the following?

Accepted Answer

A)  demand deposits 
B)  reserve requirement levels 
C)  the supply of money 
D)  inflation 
A)  demand deposits 
B)  reserve requirement levels 
C)  the supply of money 
D)  inflation

Question 6

What happens when the overnight rate is increased?

Accepted Answer

A)  there is more money for banks to lend 
B)  there is an increase in the overall money supply 
C)  there is increased economic activity 
D)  there is less money for banks to lend 
A)  there is more money for banks to lend 
B)  there is an increase in the overall money supply 
C)  there is increased economic activity 
D)  there is less money for banks to lend

Question 7

Money market mutual funds fall into which of the following categories?

Accepted Answer

A)  M4 
B)  M3 
C)  M2 
D)  M1 
A)  M4 
B)  M3 
C)  M2 
D)  M1

Question 8

The Bank of Canada has the power to do which of the following?

Accepted Answer

A)  spend money 
B)  save money 
C)  create money 
D)  increase taxes to raise money 
A)  spend money 
B)  save money 
C)  create money 
D)  increase taxes to raise money

Question 9

Which of the following can result from an oversupply of goods and services coupled with insufficient money to purchase them, potentially causing economic recession?

Accepted Answer

A)  depression 
B)  inflation 
C)  hyperinflation 
D)  deflation 
A)  depression 
B)  inflation 
C)  hyperinflation 
D)  deflation

Question 10

Which of the following encompasses anything used by a society to purchase products and services or resources?

Accepted Answer

A)  money 
B)  capital 
C)  cash 
D)  funds 
A)  money 
B)  capital 
C)  cash 
D)  funds

Question 11

You are living off campus in an apartment near school. It is the first of the month and your rent is due. You won't have enough money in your account to cover until your employer deposits your paycheque. You don't want to overdraw your account, so you check your balance several times before sending your rent to the landlord. This example illustrates which innovation in banking?

Accepted Answer

A)  theft protection 
B)  convenient deposit options 
C)  increased access to funds 
D)  real-time monitoring of funds 
A)  theft protection 
B)  convenient deposit options 
C)  increased access to funds 
D)  real-time monitoring of funds

Question 12

You receive a birthday cheque from your grandmother in the mail. It is raining and you really do not feel like leaving your dorm to go to the bank to deposit your cheque. You remember that your bank allows you to take a picture of the front and back of a cheque in order to deposit it into your account-all from your mobile phone. This example illustrates which innovation in banking?

Accepted Answer

A)  overdraft protection 
B)  convenient deposit options 
C)  increased access to funds 
D)  real-time monitoring of funds 
A)  overdraft protection 
B)  convenient deposit options 
C)  increased access to funds 
D)  real-time monitoring of funds

Question 13

What do many economists believe to be a healthy situation for the overall economy?

Accepted Answer

A)  slow, steady inflation 
B)  moderate inflation 
C)  no inflation 
D)  a little deflation 
A)  slow, steady inflation 
B)  moderate inflation 
C)  no inflation 
D)  a little deflation

Question 14

Because it is the common denominator that we use to compare products and decide which ones we will buy, money functions as which of the following?

Accepted Answer

A)  accepted resource 
B)  measure of value 
C)  store of value 
D)  medium of exchange 
A)  accepted resource 
B)  measure of value 
C)  store of value 
D)  medium of exchange

Question 15

Peter has put the money he has earned over the summer to pay for college tuition in January at a Canadian bank. He cannot touch that money until January 1. Which type of deposit does Peter have?

Accepted Answer

A)  time deposit 
B)  term deposit 
C)  demand deposit 
D)  fixed deposit 
A)  time deposit 
B)  term deposit 
C)  demand deposit 
D)  fixed deposit

Question 16

Which of the following provides basic deposit insurance to depositors if their bank fails?

Accepted Answer

A)  Canadian Reserve System 
B)  Canadian Deposit Insurance Corporation 
C)  Canada Revenue Agency 
D)  Federal Savings and Loan Insurance Corporation 
A)  Canadian Reserve System 
B)  Canadian Deposit Insurance Corporation 
C)  Canada Revenue Agency 
D)  Federal Savings and Loan Insurance Corporation

Question 17

Georgina has $200,000 in a savings account in her name alone and another $150,000 in an investment account held jointly with her daughter. If the bank fails, how much of her deposits are protected by the CDIC?

Accepted Answer

A)  $200,000 
B)  $100,000 
C)  $250,000 
D)  $150,000 
A)  $200,000 
B)  $100,000 
C)  $250,000 
D)  $150,000

Question 18

If the Bank of Canada buys government securities in open market operations, what is the likely effect?

Accepted Answer

A)  an increase in the overall money supply and increased economic activity 
B)  less money for banks to lend customers leading to an economic slowdown 
C)  a decrease in the overall money supply and higher prices on goods and services 
D)  a rapid increase in the amount of loans consumers take leading to increased economic activity 
A)  an increase in the overall money supply and increased economic activity 
B)  less money for banks to lend customers leading to an economic slowdown 
C)  a decrease in the overall money supply and higher prices on goods and services 
D)  a rapid increase in the amount of loans consumers take leading to increased economic activity

Question 19

The responsibility for insuring deposits against bank failures is held by which of the following?

Accepted Answer

A)  Canadian Banking Reserve System 
B)  Canada Deposit Insurance Corporation 
C)  Bank Insurance Corporation 
D)  Canadian Finance Department 
A)  Canadian Banking Reserve System 
B)  Canada Deposit Insurance Corporation 
C)  Bank Insurance Corporation 
D)  Canadian Finance Department

Question 20

What is it called when the Bank of Canada buys or sells government securities in order to influence the money supply and overall economy?

Accepted Answer

A)  open market operations 
B)  closed market operations 
C)  quantitative easing 
D)  economy manipulation 
A)  open market operations 
B)  closed market operations 
C)  quantitative easing 
D)  economy manipulation

The value of bitcoins on various exchanges fluctuates dramatically. This makes bitcoin look less like a currency and more like which of the following?

Why does Laura keep only $100,000 combined in her savings and chequing accounts at TD Bank?

Who controls the Bank of Canada?

Canada trades a shipment of wheat to Saudi Arabia in exchange for a shipment of oil. What is this type of arrangement called?

M1 and M2 are both measures of which of the following?

What happens when the overnight rate is increased?

Money market mutual funds fall into which of the following categories?

The Bank of Canada has the power to do which of the following?

Which of the following can result from an oversupply of goods and services coupled with insufficient money to purchase them, potentially causing economic recession?

Which of the following encompasses anything used by a society to purchase products and services or resources?

What do many economists believe to be a healthy situation for the overall economy?

Because it is the common denominator that we use to compare products and decide which ones we will buy, money functions as which of the following?

Peter has put the money he has earned over the summer to pay for college tuition in January at a Canadian bank. He cannot touch that money until January 1. Which type of deposit does Peter have?

Which of the following provides basic deposit insurance to depositors if their bank fails?

Georgina has $200,000 in a savings account in her name alone and another $150,000 in an investment account held jointly with her daughter. If the bank fails, how much of her deposits are protected by the CDIC?

If the Bank of Canada buys government securities in open market operations, what is the likely effect?

The responsibility for insuring deposits against bank failures is held by which of the following?

What is it called when the Bank of Canada buys or sells government securities in order to influence the money supply and overall economy?

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Considering Small Business Entrepreneurship and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating Employees and Teams

Enhancing Employee Management Relations

Building Customer Relationships Through Effective Marketing

Developing and Managing Products

Managing Distribution and Pricing

Developing Integrated Marketing Communications

Exploring Business Technology

Using Accounting and Financial Information

Recognizing the Basics of Financial Management

Understanding Personal Finance and Investments

Filters

Exam 18: Understanding Money Banking and Credit

The value of bitcoins on various exchanges fluctuates dramatically. This makes bitcoin look less like a currency and more like which of the following?

Why does Laura keep only $100,000 combined in her savings and chequing accounts at TD Bank?

Who controls the Bank of Canada?

Canada trades a shipment of wheat to Saudi Arabia in exchange for a shipment of oil. What is this type of arrangement called?

M1 and M2 are both measures of which of the following?

What happens when the overnight rate is increased?

Money market mutual funds fall into which of the following categories?

The Bank of Canada has the power to do which of the following?

Which of the following can result from an oversupply of goods and services coupled with insufficient money to purchase them, potentially causing economic recession?

Which of the following encompasses anything used by a society to purchase products and services or resources?

What do many economists believe to be a healthy situation for the overall economy?

Because it is the common denominator that we use to compare products and decide which ones we will buy, money functions as which of the following?

Peter has put the money he has earned over the summer to pay for college tuition in January at a Canadian bank. He cannot touch that money until January 1. Which type of deposit does Peter have?

Which of the following provides basic deposit insurance to depositors if their bank fails?

Georgina has $200,000 in a savings account in her name alone and another $150,000 in an investment account held jointly with her daughter. If the bank fails, how much of her deposits are protected by the CDIC?

If the Bank of Canada buys government securities in open market operations, what is the likely effect?

The responsibility for insuring deposits against bank failures is held by which of the following?

What is it called when the Bank of Canada buys or sells government securities in order to influence the money supply and overall economy?

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Considering Small Business Entrepreneurship and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating Employees and Teams

Enhancing Employee Management Relations

Building Customer Relationships Through Effective Marketing

Developing and Managing Products

Managing Distribution and Pricing

Developing Integrated Marketing Communications

Exploring Business Technology

Using Accounting and Financial Information

Recognizing the Basics of Financial Management

Understanding Personal Finance and Investments

Filters