Business Quiz Unit 6 Chapter 13

In 1871, Canadian parliament passed the Bank Act which outlines regulations that banks must follow. The government gives the bank the authority to operate which makes the banks known as:

• Chartered banks

• Unchartered banks

True or False? Branch banking (CIBC, TD, etc.) offers residents of both small and large cities the same services at the same cost but branch banks are expensive to maintain

• True

• False

The most important function of the Bank of Canada is to:

• give the citizens low interest rates

• regulate the money supply

True or False? Banks are the largest taxpayers in Canada and these profits help build roads, schools, hospitals, etc.

• True

• False

The bank rate, the minimum rate of interest that the Bank of Canada charges is also called the:

• prime deal

• prime lemonade

• prime lending rate

Trust Companies were established in the 1800s to manage and invest

• the funds entrusted to them by consumers

• the funds made by taxes

True or False? Trust Companies provide loans, savings, and chequing accounts, but it is NOT regulated by the Federal government's Bank Act.

• True

• False

Caisse Populaire is a type of

• is a popular bank that French people only use.

• credit union located mainly in Quebec and the members have common profession, religion, or culture

This is a financial institution also controlled by people with a common bond

• Bank

• ATM

• Credit Union

Insurance Companies focus on these 2 areas of life and insure risks:

• life insurance & fraud insurance

• health insurance & gas insurance

• life insurance & health insurance