BUS400 Chapter Notes - Chapter 14: Canada Act 1982, Money Supply, Canadian Dollar

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greenmuskrat329

11 Mar 2019

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The canadian financial system: the canadian financial system consists of, the bank of canada, chartered banks, near banks, other financial institutions, the financial system provides a variety of financial services to customers. The balance sheet of the bank of canada: liabilities of the bank of canada, bank of canada notes, canadian dollar deposits, foreign currency liabilities. Chartered banks: modern banking began with goldsmiths" receipts, branch banking system: a banking system based on relatively few banks with many branches, the bank act: the federal legislation that governs the operations of chartered banks. Chartered banks: interest spread: the difference between the interest rate that the banks charge for loans and the interest rate that they pay their depositors, an important source of bank profits. Balance sheets of chartered banks: assets of chartered banks are, notes and deposits with the bank of canada, treasury bills, government of canada securities, foreign currency assets, cheques and other items in transit, loans and mortgages.

Related Questions

QUESTION 31

The Board of Governors of the Federal Reserve System is

		composed of seven members who are appointed by the President and approved by the Senate.
		composed of 12 members of the Senate and the U.S. House of Representatives.
		elected by the general public.
		composed of representatives from the country's 12 largest commercial banks.

1.11 points

QUESTION 32

The Fed is said to be the "lender of last resort" in that

		it charges a higher interest rate to borrowers than does any other bank.
		it functions as the government's bank only when commercial banks fail to do so.
		it makes loans to individuals whom commercial banks do not believe are credit-worthy.
		it stands ready to lend to any depository institution that it has decided should not fail.

1.11 points

QUESTION 33

The Federal Reserve System acts as the government's fiscal agent by

		providing checking account services for the government.
		preparing the budget the President presents to Congress every year.
		determining how to finance a deficit.
		auditing taxpayers.

1.11 points

QUESTION 34

The Federal Reserve System was established in which year?

		1913.
		1929.
		1865.
		1941.

1.11 points

QUESTION 35

By serving as the lender of last resort,

		the Fed provides check clearing services.
		the Fed aids in the sale of government securities.
		the Fed supervises depository institutions.
		the Fed can prevent bank failures.

1.11 points

QUESTION 36

Depository institutions must

		use and pay for the services of the Federal Reserve System.
		set their interest rates according to schedules established by the Federal Reserve System.
		keep a certain percentage of their deposits as reserves.
		turn over a percentage of their profits to the Federal Reserve System as payment for services provided by the Fed.

1.11 points

QUESTION 37

The Federal Reserve System has

		50 district banks.
		24 district banks.
		12 district banks.
		7 district banks.

1.11 points

QUESTION 38

The part of the Federal Reserve System (the Fed) that holds the reserve balances of depository institutions is

		the Board of Governors.
		the Federal Advisory Committee.
		the Federal Open Market Committee.
		the Federal Reserve district banks.

1.11 points

QUESTION 39

The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a

		systemic risk.
		liquidity risk.
		lending risk.
		moral hazard.

1.11 points

QUESTION 40

A system in which depository institutions hold reserves that are less than the amount of total deposits is called

		fiat money banking.
		required reserve banking.
		fractional reserve banking.
		central banking system.

1.11 points

QUESTION 41

Total reserves of private banks are

		all customer deposits.
		the minimum amount banks need to hold against time deposits.
		federal reserve notes.
		deposits held at the Fed and vault cash.

1.11 points

QUESTION 42

A statement of assets and liabilities of any business entity is called

		a cash flow statement.
		an income statement.
		a balance sheet.
		a statement of net worth.

1.11 points

QUESTION 43

Which of the following actions has no effect on the total money supply?

		The Federal Open Market Committee buys government securities.
		There is a transfer of deposits from one bank to another bank.
		There is change in the money multiplier.
		The Federal Open Market Committee sells government securities.

1.11 points

QUESTION 44

Given a required reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of

		$80.
		$0.
		$400.
		$20.

1.11 points

QUESTION 45

The Federal Open Market Committee has responsibility for

		appointing members to the Board of Governors of the Federal Reserve system.
		issuing orders to buy or sell government securities for the Fed.
		advising the Treasury Department on monetary policy.
		printing money.

indigobutterfly708

What are the requirements for something to be considered money? Why does the dollar have value?
What does the money supply consist of and what are the respective amounts in the total money supply for the United States?
What are the primary functions of the Fed? What role does the Federal Open Market Committee (FOMC) play in our economy?
What role do the financial institutions (commercial banks and other institutions) play in our financial system?
What is meant by the term “fractional-reserve banking” in our system? What are the implications for consumers?
What are the tools available to the FED for controlling the money supply? Which are used most often? Which are most effective?
How does the money multiplier help to determine the effects of monetary policy?
What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices?

grayllama547

What are the requirements for something to be considered money? Why does the dollar have value?
What does the money supply consist of and what are the respective amounts in the total money supply for the United States?
What are the primary functions of the Fed? What role does the Federal Open Market Committee (FOMC) play in our economy?
What role do the financial institutions (commercial banks and other institutions) play in our financial system?
What is meant by the term “fractional-reserve banking” in our system? What are the implications for consumers?
What are the tools available to the FED for controlling the money supply? Which are used most often? Which are most effective?
How does the money multiplier help to determine the effects of monetary policy?
What are the pros and cons of using monetary policy, as opposed to the use of fiscal policy, for implementing economic policies and practices?

grayllama547

BUS400 Chapter Notes - Chapter 14: Canada Act 1982, Money Supply, Canadian Dollar

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