Question 1

Savings deposits are

Accepted Answer

A) a liability to a commercial bank. 
B) an asset to a commercial bank. 
C) a liability to the household or firm that has the account. 
D) an asset for the Bank of Canada. 
A) a liability to a commercial bank. 
B) an asset to a commercial bank. 
C) a liability to the household or firm that has the account. 
D) an asset for the Bank of Canada.

Question 2

The term "financial intermediaries" refers to

Accepted Answer

A) commercial banks only. 
B) credit unions only. 
C) savings and loan associations only. 
D) both commercial banks,credit unions,and trust companies. 
A) commercial banks only. 
B) credit unions only. 
C) savings and loan associations only. 
D) both commercial banks,credit unions,and trust companies.

Question 3

A savings deposit is distinguishable from a time deposit in that,with a savings deposit,

Accepted Answer

A) funds may be withdrawn before the due date only if you pay a penalty. 
B) funds may be withdrawn at any time without payment of a penalty. 
C) funds are not protected against a loss in their nominal value. 
D) funds are not counted in the calculated of M2+. 
A) funds may be withdrawn before the due date only if you pay a penalty. 
B) funds may be withdrawn at any time without payment of a penalty. 
C) funds are not protected against a loss in their nominal value. 
D) funds are not counted in the calculated of M2+.

Question 4

Are cheques considered money?

Accepted Answer

Cheques are instructions to tr

Question 5

The M2+ definition of the money supply includes

Accepted Answer

A) savings deposits and non-personal notice deposits. 
B) M1 plus M2. 
C) M1 plus personal savings and non-personal notice deposits. 
D) M2 plus deposits held at near banks such as trust companies and credit unions. 
A) savings deposits and non-personal notice deposits. 
B) M1 plus M2. 
C) M1 plus personal savings and non-personal notice deposits. 
D) M2 plus deposits held at near banks such as trust companies and credit unions.

Question 6

A ________ when the value of a currency depends upon the public's confidence that the currency can be exchanged for goods and services.

Accepted Answer

A) moral responsibility 
B) a conversion to a fixed quantity of gold is necessary 
C) fiduciary monetary standard exists 
D) monetary union is necessary 
A) moral responsibility 
B) a conversion to a fixed quantity of gold is necessary 
C) fiduciary monetary standard exists 
D) monetary union is necessary

Question 7

A $10,000 price tag on a new car is an example of money as

Accepted Answer

A) a medium of exchange. 
B) a unit of account. 
C) a store of value. 
D) a time deposit. 
A) a medium of exchange. 
B) a unit of account. 
C) a store of value. 
D) a time deposit.

Question 8

Small-denomination savings deposits are

Accepted Answer

A) considered part of M2+ money. 
B) included in the definition of both M1+ and M2+. 
C) included in the definition of M1+,but not in M2+. 
D) included in the definition of demand deposits. 
A) considered part of M2+ money. 
B) included in the definition of both M1+ and M2+. 
C) included in the definition of M1+,but not in M2+. 
D) included in the definition of demand deposits.

Question 9

A bank has chequable deposits of $400,savings deposits of $900,other deposits of $900,loans of $950,government securities of $900,outstanding credit card balances of $400,currency of $40 held at the bank,and deposits in its reserve account at the Bank of Canada of $40.What amount of this bank's deposits are in the form of M2+?

Accepted Answer

M2+ equals

Question 10

A nonpersonal notice deposit is

Accepted Answer

A) a liability to a commercial bank. 
B) an asset to a commercial bank. 
C) a liability to the household or firm that has the account. 
D) an asset for the Bank of Canada. 
A) a liability to a commercial bank. 
B) an asset to a commercial bank. 
C) a liability to the household or firm that has the account. 
D) an asset for the Bank of Canada.

Question 11

Define prices of all other goods in terms of money serves as

Accepted Answer

A) unit of account. 
B) medium of exchange. 
C) store of value 
D) barter. 
A) unit of account. 
B) medium of exchange. 
C) store of value 
D) barter.

Question 12

Provide an overview of the Canadian financial system.

Accepted Answer

A discussion of the following would be t

Question 13

Given the list of assets below,which is the least liquid?

Accepted Answer

A) $500 worth of General Motors common stock 
B) $500 worth of General Motors bonds 
C) a $500 traveler's cheque 
D) a Renoir painting. 
A) $500 worth of General Motors common stock 
B) $500 worth of General Motors bonds 
C) a $500 traveler's cheque 
D) a Renoir painting.

Question 14

Chequable deposit account balances in chartered banks are

Accepted Answer

A) counted in M2. 
B) considered a near money. 
C) considered credit,but not money. 
D) counted in M1+. 
A) counted in M2. 
B) considered a near money. 
C) considered credit,but not money. 
D) counted in M1+.

Question 15

When we examine the Canadian money supply,________ represent he largest component of M1+.

Accepted Answer

A) coins minted by the treasury 
B) chequable deposits 
C) certificates of deposit 
D) Bank of Canada notes 
A) coins minted by the treasury 
B) chequable deposits 
C) certificates of deposit 
D) Bank of Canada notes

Question 16

The transactions approach to measuring money stresses the role of money as a

Accepted Answer

A) medium of exchange. 
B) unit of accounting. 
C) store of value. 
D) standard of deferred payment. 
A) medium of exchange. 
B) unit of accounting. 
C) store of value. 
D) standard of deferred payment.

Question 17

The amount of money in circulation is referred to as

Accepted Answer

A) seignorage. 
B) fiat money 
C) the money supply 
D) reserves. 
A) seignorage. 
B) fiat money 
C) the money supply 
D) reserves.

Question 18

Given the list of assets below,which is the most liquid?

Accepted Answer

A) $500 worth of General Motors common stock 
B) $500 worth of General Motors bonds 
C) a $500 traveler's cheque 
D) a one-ounce gold coin 
A) $500 worth of General Motors common stock 
B) $500 worth of General Motors bonds 
C) a $500 traveler's cheque 
D) a one-ounce gold coin

Question 19

A $5,000 price tag on a new car is an example of money as

Accepted Answer

A) a medium of exchange. 
B) a unit of account. 
C) a store of value. 
D) a time deposit. 
A) a medium of exchange. 
B) a unit of account. 
C) a store of value. 
D) a time deposit.

Question 20

Even when a particular monetary asset is not performing one of the functions of money well,people still use the asset because

Accepted Answer

A) it is still easier than relying on barter. 
B) they have no choice. 
C) once an asset is defined as money it is always money. 
D) people expect money will come back at a later date. 
A) it is still easier than relying on barter. 
B) they have no choice. 
C) once an asset is defined as money it is always money. 
D) people expect money will come back at a later date.

Savings deposits are

The term "financial intermediaries" refers to

A savings deposit is distinguishable from a time deposit in that,with a savings deposit,

Are cheques considered money?

The M2+ definition of the money supply includes

A ________ when the value of a currency depends upon the public's confidence that the currency can be exchanged for goods and services.

A $10,000 price tag on a new car is an example of money as

Small-denomination savings deposits are

A nonpersonal notice deposit is

Define prices of all other goods in terms of money serves as

Provide an overview of the Canadian financial system.

Given the list of assets below,which is the least liquid?

Chequable deposit account balances in chartered banks are

When we examine the Canadian money supply,________ represent he largest component of M1+.

The transactions approach to measuring money stresses the role of money as a

The amount of money in circulation is referred to as

Given the list of assets below,which is the most liquid?

A $5,000 price tag on a new car is an example of money as

Even when a particular monetary asset is not performing one of the functions of money well,people still use the asset because

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 12: Money and the Banking System

Savings deposits are

The term "financial intermediaries" refers to

A savings deposit is distinguishable from a time deposit in that,with a savings deposit,

Are cheques considered money?

The M2+ definition of the money supply includes

A ________ when the value of a currency depends upon the public's confidence that the currency can be exchanged for goods and services.

A $10,000 price tag on a new car is an example of money as

Small-denomination savings deposits are

A nonpersonal notice deposit is

Define prices of all other goods in terms of money serves as

Provide an overview of the Canadian financial system.

Given the list of assets below,which is the least liquid?

Chequable deposit account balances in chartered banks are

When we examine the Canadian money supply,________ represent he largest component of M1+.

The transactions approach to measuring money stresses the role of money as a

The amount of money in circulation is referred to as

Given the list of assets below,which is the most liquid?

A $5,000 price tag on a new car is an example of money as

Even when a particular monetary asset is not performing one of the functions of money well,people still use the asset because

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters