Answer 27) E
M2 includes currency, personal deposits at chartered banks ,non personal demand and notice deposits at chartered banks and fixed term deposits. While M2+ includes all the items of M2 plus personal deposits at government owned savings institutions, money market mutual funds, life insurance companies.
Answer -28 B)
The functions of a central bank includes-
• controller of credit and money supply in economy
•The lender of last resort
• Issuer of currency
• Banker to Government
• Banker’s bank and supervisor
• Clearing House Of the Economy
Answer -29 E)
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also...
Saved Question 20 (1 point) What is a bank run? O A) A situation where a commercial bank is holding zero reserves. B) A panic situation where many depositors rush simultaneously to withdraw their deposit money in the form of cash. OC) A situation where all commercial banks in the system are simultaneously short of reserves. O D) The collapse of a non-commercial bank as a result of non-payment of loans. E) The collapse of a commercial banks as a...
Question 16 (1 point) Saved Credit cards are considered to be "money substitutes" instead of money because OA) they are not acceptable to pay for purchases. OB) they cannot serve as a temporary medium of exchange. O C) the only function of money they can perform is to serve as a store of value. O D money must eventually be used to pay for the transaction. E) credit card accounts are not chequable. Question 17 (1 point) Until recently, and...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank of Canada buys $100 billion worth of government bonds of chartered banks. Assuming the desired reserve ratio is 20%, in this process, a) Bank of Canada's assets increase by $100b. b) Bank of Canada's assets decrease by $100b. c) chartered banks' deposits at the Bank of Canada decrease by $100b. d) chartered banks' deposits at the Bank of Canada increase by $100b. e) chartered...
Question 9 (1 point) Which of the following is not considered a function of money? Question 9 options: it facilitates exchange it acts as a means of payment it can be held and exchanged for future goods and services it allows banks to lend out funds all of the above are functions of money Question 10 (1 point) Suppose that I find out from a L.L. Bean catalogue that a sweater costs $45. In this case, money is serving as...
Question 1 (1 point)
The amount of reserves that a commercial bank is required to
hold is equal to:
Question 1 options:
the amount of its checkable deposits.
the sum of its checkable deposits and time deposits.
its checkable deposits multiplied by the reserve
requirement.
its checkable deposits divided by its total assets.
Save
Question 2 (1 point)
Answer the question on the basis of the following information
for the Moolah Bank.
Refer to the information and assume that Moolah...
This Question: 1 pt 2 of 15 (1 complete Using the information below compute the M2 money supply Category Currency and coin held by the public Checking account balances Traveler's checks Savings account balances Small denomination time deposits Money market deposit accounts in banks Noninstitutional money market fund shares Amount $700 $1,000 $10 $2.600 $5,000 $1.000 $2.000 The M oney
money market mutual funds Question 5 (1 point) Which of the following is included in M2 but not in M1? ocurrency o demand deposits savings deposits All of the above are included in both M1 and M2 Question 6 (1 point) Asset Amount in $Billions Small time deposits 780
Question 4 (Mandatory) (1 point) Saved From the following list of statements, which one is FALSE? In Canada, the federal government and the CRTC try to balance competition in the mobile telephony sector. However, there is hardly any competition in the industry at this moment. The federal government has studied the possibility of facilitating the entry of foreign companies, such as Verizon, into Canada in order to rebalance competition in the country After opening a number of stores in Canada,...
Question 1 (1 point) Saved In a world without deposit insurance we would expect to see all the following EXCEPT: Question 1 options: frequent bank runs. the public being reluctant to deposit in banks. people keeping more money in cookie jars and under the mattress. Question 2 (1 point) Saved All the following are current regulations on banks, EXCEPT: Question 2 options: Banks need to show their books to on-site examiners. Banks need to hold a certain amount of capital...
Question 4 (1 point) Saved Which of the following is used in gene recombination of BCR subunits AND gene recombination of TCR subunits? O a) Rag1/2 Ob) RSS Oc) TUT d) All of the above. Question 5 (1 point) Saved Thymocytes undergoing B-selection express which of the following? a) pre-T Ob) CD4 O CDB