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The regulatory system that permitted the organization of a bank by any group that met certain
criteria is known as a ____.
A) bilateral regulatory system
B) tiered regulatory system
C) two-tiered regulatory system
D) free banking system
Answer: D
Diff: 1 Type: MC Page Ref: 239
Skill: Recall
Objective List: 11.1 Chronicle the historical development of the Canadian banking industry and
its current structure
The U.S. banking system is considered to be a dual system because ____.
A) banks offer both chequing and savings accounts
B) it actually includes both banks and thrift institutions
C) it is regulated by both state and federal governments
D) it was established before the Civil War, requiring separate regulatory bodies for the North and
South
Answer: C
Diff: 2 Type: MC Page Ref: 239
Skill: Recall
Objective List: 11.1 Chronicle the historical development of the Canadian banking industry and
its current structure
Which bank became the government's fiscal agent in 1864?
A) The Bank of Canada
B) The Chartered Bank of Upper Canada
C) The Bank of Montreal
D) The US Treasury
Answer: C
Diff: 1 Type: MC Page Ref: 240
Skill: Recall
Objective List: 11.1 Chronicle the historical development of the Canadian banking industry and
its current structure
The Finance Act of 1914 required that ____.
A) local banks be subject to the same regulations as national banks
B) national banks establish branches in large cities
C) the Department of Finance to act as a lender of last resort
D) the Bank of Canada to act as a lender of last resort
Answer: C
Diff: 2 Type: MC Page Ref: 242
Skill: Recall
Objective List: 11.1 Chronicle the historical development of the Canadian banking industry and
its current structure