Choose the Statement That Is Incorrect

question 98

Multiple Choice

Choose the statement that is incorrect.

• A)A chartered bank is a private firm, chartered under the Bank Act of 1991 to receive deposits and make loans.
• B)A caisse populaire is similar to a credit union.
• C)Trust and mortgage loan companies receive deposits, make loans, and act as trustee for pension funds and for estates.
• D)A credit union is a cooperative organization that operates under the Co- operative Credit Association Act of 1991.
• E)Trust and mortgage loan companies have the bulk of the deposits in M1 and M2.

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Definitions:

Functional Currency

Functional currency is the currency of the primary economic environment in which an entity operates, and in which its financial statements are prepared.

Functional Currency

The main currency used by a business or unit in its day-to-day operations.

Exchange Rate

The price at which one currency can be exchanged for another, often fluctuating based on market conditions.