Commercial Banks in Canada Are Prohibited by Law from

question 117

Multiple Choice

Commercial banks in Canada are prohibited by law from

• A)accepting demand deposits.
• B)issuing paper currency.
• C)lending money to households and firms.
• D)accepting term deposits.
• E)settling inter-bank debts through a clearinghouse.

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Definitions:

Nonprice Competition

Strategies used by companies to attract customers through style, service, or location rather than through lower prices.

Products

Goods or services offered by businesses to meet consumer needs and wants.

Competitive Firms

Companies that operate in a market where there are many buyers and sellers, such that no single entity can dictate the market price of goods and services.

Price

The monetary value that must be paid to secure a good or service.