the economics of money, banking, and financial markets

325 $

© 2014 Pearson Canada Inc.$

11.6 The Near Banks: Regulation and Structure

1. 
   

   Near banks are defined as ____.
   A) banks, brokers, and credit unions and caisses populaires
   B) banks and trust and mortgage loan companies
   C) trust and mortgage loan companies, and credit unions and caisses populaires
   D) trust and mortgage loan companies, and brokers
   Answer: C
   Diff: 1 Type: MC Page Ref: 258
   Skill: Recall
   Objective List: 11.6 Understanding Near Bank Regulation and Structure

   
   


2. 
   

   Trust and mortgage loan companies are usually ____.
   A) operating under a charter issued by either the federal government or one of the provincial
   governments
   B) investors in commercial loans
   C) more profitable than chartered banks and credit unions and caisses populaires
   D) regulated and supervised by the TML
   Answer: A
   Diff: 1 Type: MC Page Ref: 258
   Skill: Recall
   Objective List: 11.6 Understanding Near Bank Regulation and Structure

   
   


3. 
   

   An essential characteristic of credit unions is that ____.
   A) they are typically large
   B) branching is prohibited
   C) their lending is primarily for mortgage loans
   D) they are organized for individuals with a common bond
   Answer: D
   Diff: 1 Type: MC Page Ref: 259
   Skill: Recall
   Objective List: 11.6 Understanding Near Bank Regulation and Structure

   
   


4. 
   

   Credit unions are usually ____.
   A) more profitable than Schedule I banks
   B) regulated by the OSFI
   C) regulated by a Centrale
   D) investors in mortgage loans
   Answer: D
   Diff: 1 Type: MC Page Ref: 260
   Skill: Recall
   Objective List: 11.6 Understanding Near Bank Regulation and Structure