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

question 2

Multiple Choice

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

• A)an individual transfers money from ShipShape Credit Union to Scotiabank
• B)an individual immigrates to Canada and deposits money from abroad
• C)an individual puts cash in a safety-deposit box
• D)the Bank of Canada sells government securities to an individual or a firm
• E)the Bank of Canada buys foreign currency from abroad

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Definitions:

Common Stock

Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Investors

Individuals or entities that allocate capital to various types of investments with the expectation of obtaining a future financial return.

Comparative Balance Sheet

Financial statement that presents the financial position of a company at different points in time, side-by-side, to enable comparative analysis.

Financial Condition

The state of a company's assets, liabilities, and equity, as represented in its financial statements, indicating its ability to generate cash and profits.