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Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also includes O A) deposits at trust companie
Question 28 (1 point) Saved The functions of the Bank of Canada include O A) acting as the lender of last resort for the larg
Question 29 (1 point) Saved In the event of a sudden loss in confidence in the ability of the commercial banks to redeem depo
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Answer #1

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)

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