BBI10 and BBI20 review on the topic of Banking

Banks make profits by:

• hoping that people forget their money is in the bank

• earning money from the differences in interest from lending and cost of borrowing.

• charging more interest to investors and less interest to borrowers

• by running Ponzi schemes and never getting caught

Match the following

• Foreign-owned and have restrictions set by the Bank Act

• Schedule 2

• Owned by Canadian shareholders and

  offer accepting deposits and investment and financial services

• Schedule 1

  Banks

• Foreign-owned and operate similarly to Schedule I Banks

• Schedule 3

  Banks

What is the most important function of the bank of Canada?

• To monitor each bank on a monthly basis

• To increase the interest rates regularly

• To regulate the money supply

• To ensure there is enough money in the country for teachers to have summers off.

Companies were first established in the late 1800s to ​​ ​ (a)   the funds entrusted to them by con​sumers.

• manage and invest
• lend and invest
• invest and borrow
• steal
• manage and borrow

Credit Unions are organized and owned by groups of people who agree to pool and share resources

• TRUE

• FALSE

• DUE TO FALLING ASLEEP IN CLASS, I AM NOT SURE

What two ways are insurance companies broken down into?

Re-order the following when reconciling bank statements.

• Subtract the total in Step 2 from the total in step 3.

• Check off the all the financial transactions that appear on your account statement

• List any deposits that are in your transaction register but do not appear on the account statement.

• Enter in your transaction register any transactions on the statement that are not already in the register

• List any cheques and withdrawals that are in your register but not on the statement.

WRITING A CHEQUE - Match the following parts of cheque

• Name of the person from whose account the money will be taken

• Date

• All cheques must show date, month, year

• Drawer

• Dollars must appear in numbers and in words

• Payee

• Name of the financial institution

• Drawee

• Name of the person for whom the cheque is written

• Amount

Tell me three differences between personal banking and commercial banking.

Which is NOT an advantage to digital banking for consumers?

• Increased accessibility:

• Convenience:

• Faster transactions

• Improved transparency

• better relationship with personal banker