Exam 12: Money, Banking, and Money Creation

The functions of money are to serve as a:

Demand deposits are:

When we say that money serves as a medium of exchange, we mean that it is:

If you write a cheque on a Saskatoon bank to purchase a new Honda Civic, you are employing money as:

Stock market price quotations best exemplify money serving as a:

A basic argument for using the M1 concept of money is that:

Money and banking in Canada are federal responsibilities.

When we say that money serves as a medium of exchange, we mean that it is:

Fiat money is valuable because:

Suppose a chartered banking system has $100,000 of outstanding demand deposits and actual cash reserves of $35,000. If the desired reserve ratio is 20 percent, the banking system can expand the supply of money by the maximum amount of:

When the receipts given by goldsmiths to depositors were used to make purchases:

Refer to the information below which shows the demand deposits and actual reserves of a banking system. When the desired reserve ratio is 20 percent, the money creating potential of the entire banking system is:

A bank owns a 10-story office building. In the bank's balance sheet, this would be an example of:

Which of the following describes the fundamental identity embodied in a balance sheet?

Subprime mortgage loans refer to:

When we say that money serves as a store of value, we mean that it is:

Coins and paper money are:

Chartered banks increase the supply of money when they purchase either personal IOUs or government bonds from businesses and households.

In 2011, the value of M2++ in Canada was about:

Assume Company X deposits $100,000 in cash in chartered Bank A. If no excess reserves exist at the time this deposit is made and the desired reserve ratio is 20, Bank A can increase the money supply by a maximum of: