Which of the Following Examples Constitutes a New Deposit to the Canadian

question 80

Multiple Choice

Which of the following examples constitutes a new deposit to the Canadian commercial banking system?

• A)An individual transfers money from Ship Shape Credit Union to Scotiabank.
• B)An individual immigrates to Canada and maintains his existing deposits in a foreign bank.
• C)An individual puts cash in a safety-deposit box.
• D)The Bank of Canada buys government securities from a Canadian commercial bank.
• E)The Bank of Canada buys foreign currency from abroad.

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Definitions:

Cash Turnover Ratio

A financial metric that measures how efficiently a company generates sales from its cash on hand.

Profit

The financial gain realized when the revenue from business operations and sales exceeds the expenses, taxes, and costs of producing and selling goods or services.

In-The-Black

A financial term indicating that a business is making a profit, as opposed to being "in the red" which means it is incurring losses.

Quick Ratio

A liquidity metric that indicates a company's capacity to pay its current liabilities without needing to sell inventory, calculated as (cash + marketable securities + accounts receivable) / current liabilities.