Exam 4: The Monetary System: What It Is and How It Works

The Bank of Canada can influence the money supply using:

If the Bank of Canada conducts a Sale and Repurchase Agreement (SRA), the money supply will:

People use money as a store of value when they:

If the currency-deposit ratio equals 0.5 and the reserve-deposit ratio equals 0.1, then the money multiplier equals:

People use money as a unit of account when they:

Financial intermediation is the process of:

The monetary base of Moneyland is $500 million. The currency-deposit ratio (cr) is 0.2, and the reserve-deposit ratio (rr) is 0.2. Calculate the money multiplier and money supply.

The development of fiat money is quite perplexing, as people began to value something that is intrinsically useless. Explain why fiat money came into use.

The minimum amount of owners' equity in a bank mandated by regulators is called a _____ requirement.

Liabilities of banks include:

Table: Bank Balance Sheet Based on the table, what is the reserve-deposit ratio at the bank?

Based on historical observations, if many banks fail, this is likely to:

Macroeconomists call assets used to make transactions:

When the Bank of Canada increases the overnight rate, it:

When the Bank of Canada increases the interest rate paid on reserves, it:

The money supply consists of:

In Canada, bank reserves consist of:

Currency equals:

The Bank of Canada wants to increase the money supply by printing and distributing 1 million dollars. What will be the actual increase in money supply if the public holds one-fourth of the currency as cash and deposits rest of the money in banks that hold 5 percent of their deposits as reserves?

Chequing account balances that are linked to debit cards are included in: