An Important Routine Function of the Bank of Canada Is

question 230

Multiple Choice

An important routine function of the Bank of Canada is:

• A)to help new chartered banks sell capital stock.
• B)to supply the economy with paper currency.
• C)to advise chartered banks as to the most profitable ways of reinvesting profits.
• D)to help chartered banks develop correspondent relationships with foreign banks.

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Definitions:

Effective Tax Rate

The mean rate at which a person or business is charged with taxes, determined by dividing the total amount of taxes paid by the amount of income that is subject to tax.

Cost Method

A method of accounting for investments where the investment is recorded at cost and only dividend income is recognized.

Goodwill Impairment

A decrease in the value of goodwill, indicating that the acquired company is not performing as expected.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life.