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Banking Practice QuestionsForms of legal tender in Canada include one or more of the following.a)bank notesb)chequesc)credit cardsd)gift cardse)all of the above An instrument used by the Bank of Canada to control the money supply is called the bank rate, which is also known as the:a)prime lending rateb)daily ratec)current rated)money supply ratee)none of theseA temporary loan from a financial institution that results when the institution pays a cheque written for more money than is in a person’s bank account, is called:a)collateral.b)an outstanding cheque.c)an overdraft.d)a personal debt.e)a savings plan.The Bank of Canada:a)Provides income to the government.b)Earns a profit for the shareholders.c)Helps to control the money supply and interest rates.d)Prevents banks from reporting losses.e)Is a slush fund for the Prime Minister.A cheque that is dated more than 6 months ago is called ___________.a)an NSF cheque.b)an endorsementc)stale dated.d)a certified chequee)a line of credit. The confidential electronic signature that is similar to the signature on a signature card is known by the abbreviation:a)ABM.b)PIM.c)PIN.d)ABN.e)MICR.The abbreviation for the organization that is charged with protecting most savings-plan deposits in banks, trust companies, and loan companies in Canada is:a)CDCC.b)COIC.c)CDIC.d)CCID.e)DCIC.Who is the current Governor of the Bank of Canada?a)Mark Carneyb)David Johnsonc)Stephen S. Polozd)Stephen Harpere)Jim FlahertyAssume you have just written a cheque to purchase a new computer. Who is the Drawee? Your financial institution.The guarantor of the transaction.The person whose account the money will be taken from.The person or business to whom the cheque is written.The Central Bank which clears the cheque.One of the functions of the Bank of Canada is:To mint our coinsTo provide mortgagesTo provide bank accounts for citizensTo maintain the value of our dollarBoth a and bWhich of the following is great for emergencies, is pre-arranged between you and your bank, and only requires interest payments on a monthly basis?Credit CardMortgageTerm LoanLine of CreditDebit CardIf your bank is a member of the government agency that insures deposit. Your deposited funds are insured up to:$50,000$60,000$75,000$100,000$120,000The newest Canadian bank notes are created using:cotton fibresflax paperMylar filmlinen papersynthetic polymerThe Royal Canadian Mint has production operations in which two cities?Toronto and OttawaWinnipeg and OttawaOttawa and VancouverMontreal and TorontoMontreal and HalifaxWhich of the following is a Schedule 2 bank in Canada?Bank of MontrealING Bank of CanadaScotiabankCBICRoyal Bank of CanadaThe process of making sure that an individual balance in a transaction register agrees with the information provided on a bank statement is known asbalancingrecordingreconcilingbudgetingcompoundingWhich of the following services would you not expect to be provided by the financial institution you bank with?Provide personal chequesOffer a safety deposit boxProvide small business loansList your house for saleOffer a savings accountThe Financial Literacy Competition Practice Questions are the sole and exclusive property of the School of Accounting and Finance (SAF) at the University of Waterloo. Access to these questions are granted exclusively to teachers who have registered for the Financial Literacy Competition and are to be used to enhance teaching in the classroom. Registered FLC teachers can make sufficient copies of the Practice Questions for their students, but copying is limited to students within the academic year. ................
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