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

question 47

Multiple Choice

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

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

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Definitions:

Lending Arrangements

Financial agreements where a lender provides funds to a borrower with the expectation that the funds will be repaid, often with interest.

Accounts Receivable Financing

An arrangement where a business sells its outstanding invoices to a third party at a discount in exchange for immediate cash.

Technologically Obsolete

The state in which a technology or product becomes outdated or no longer competitive due to advances in newer technologies.

Leasing Credit Criteria

The standards and requirements set by lessors to evaluate the creditworthiness and eligibility of lessees for a lease agreement.