ECON 248 - Quiz 4 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2025-2026
What is the definition of M1?
Select one:
a. currency held by individuals and businesses plus chequable deposits
b. currency held by individuals and businesses plus non-chequable deposits
c. currency held by individuals and businesses only
d. currency held by individuals and businesses plus fixed term deposits
e. currency - ANSWERS a. currency held by individuals and businesses plus
chequable deposits
If you wrote a cheque to make a purchase of textbooks, which function of money
would you be using?
Select one:
a. commercial function
b. medium of exchange
c. measure of liquidity
d. unit of account
e. store of value - ANSWERS b. medium of exchange
What is the difference between M1 and M2?
Select one:
, a. M1 includes currency held by individuals and businesses, and M2 does not.
b. M1 includes chequable deposits, and M2 does not.
c. M2 includes fixed term deposits, and M1 does not.
d. M1 includes non-chequable deposits, and M2 does not.
e. M2 is always smaller than M1. - ANSWERS c. M2 includes fixed term
deposits, and M1 does not.
Which one of the following is not a service of depository institutions?
Select one:
a. lowering the cost of borrowing
b. lowering the cost of monitoring borrowers
c. creating liquidity
d. providing a place for reserve account deposits
e. pooling risk - ANSWERS d. providing a place for reserve account deposits
The payments system refers to the system through which
Select one:
a. the Bank of Canada makes settlements with chartered banks.
b. banks make payments to each other to settle transactions by their customers.
c. bank notes are issued by the Bank of Canada.
d. individuals make payments to each other to settle transactions.
e. bankruptcies are declared. - ANSWERS b. banks make payments to each
other to settle transactions by their customers.
If a customer of a bank makes a withdrawal from his chequable deposit account,
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2025-2026
What is the definition of M1?
Select one:
a. currency held by individuals and businesses plus chequable deposits
b. currency held by individuals and businesses plus non-chequable deposits
c. currency held by individuals and businesses only
d. currency held by individuals and businesses plus fixed term deposits
e. currency - ANSWERS a. currency held by individuals and businesses plus
chequable deposits
If you wrote a cheque to make a purchase of textbooks, which function of money
would you be using?
Select one:
a. commercial function
b. medium of exchange
c. measure of liquidity
d. unit of account
e. store of value - ANSWERS b. medium of exchange
What is the difference between M1 and M2?
Select one:
, a. M1 includes currency held by individuals and businesses, and M2 does not.
b. M1 includes chequable deposits, and M2 does not.
c. M2 includes fixed term deposits, and M1 does not.
d. M1 includes non-chequable deposits, and M2 does not.
e. M2 is always smaller than M1. - ANSWERS c. M2 includes fixed term
deposits, and M1 does not.
Which one of the following is not a service of depository institutions?
Select one:
a. lowering the cost of borrowing
b. lowering the cost of monitoring borrowers
c. creating liquidity
d. providing a place for reserve account deposits
e. pooling risk - ANSWERS d. providing a place for reserve account deposits
The payments system refers to the system through which
Select one:
a. the Bank of Canada makes settlements with chartered banks.
b. banks make payments to each other to settle transactions by their customers.
c. bank notes are issued by the Bank of Canada.
d. individuals make payments to each other to settle transactions.
e. bankruptcies are declared. - ANSWERS b. banks make payments to each
other to settle transactions by their customers.
If a customer of a bank makes a withdrawal from his chequable deposit account,
