Exam 17: Money in the Open Economy

In the monetary intertemporal model,the long-run effects of an increase in the money supply growth rate include

An increase in the inflation rate shifts

For assessing whether and how much of an asset to hold,the important consideration is the asset's amount of

In the contemporary Canadian economy,the best example of fiat money would be

Examples of financial intermediaries include

The optimal trade-off between current consumption goods and future consumption goods is expressed as

The argument that deposit insurance can prevent the failure of an otherwise sound bank is based on the idea that

To implement the Friedman rule,the monetary authority needs to set the money growth rate so that:

The maturity of a 30-year bond that makes coupon payments is

A system that uses commodity-based paper currency was used in Canada

The double coincidence of wants problem is solved by

Widespread use of deposit banking and the use of cheques in transactions in Canada

The founding of the Canada Deposit Insurance Corporation (CDIC)was much later than deposit insurance arrangements in other countries because

Some of the most renowned examples of hyperinflation occurred in Austria,Hungary,Germany and Poland shortly after

One characteristic of a financial intermediary is that

The most likely cause of a hyperinflation is

Banks in the Diamond-Dybvig model can offer depositors increased liquidity because

The Fisher relationship may be described by the following equation in which R is the nominal rate of interest,r is the real rate of interest,and i is the inflation rate.

Market exchange is typically an exchange of goods for money as opposed to goods for goods because use of money solves the problem of

The securitizing of mortgages is