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.

Question

Quizplus · Accepted Answer

Trust and mortgage loan companies do not have the bulk of deposits in M1 and M2. M1 and M2 refer to the money supply in an economy, and primarily include currency, demand deposits, and other highly liquid assets. Chartered banks, not trust and mortgage loan companies, hold the majority of these deposits in Canada.

Choose the Statement That Is Incorrect