Ontario Mortgage Agent Practice Exam

Which type of banks in Canada are branches or subsidiaries of foreign banks?

1. Schedule 2 banks

2. Schedule 1 banks

3. Schedule 3 banks

4. Credit unions

The correct answer is: Schedule 2 banks

Schedule 2 banks are the correct choice because they are defined as branches or subsidiaries of foreign banks. Schedule 1 banks are completely owned by Canadian shareholders, so they would not fit the criteria. Schedule 3 banks are domestic banks that are not subsidiaries or branches of foreign banks, so they would also not be the correct answer. Credit unions are member-owned financial cooperatives and do not fit the definition of branches or subsidiaries of foreign banks.