SJD1501 Assignment 7 PORTFOLIO (COMPLETE ANSWERS GRADED
A+) 2024 (554240)
Mia puts money into a piggy bank so she can spend it later. Which of the following
functions of money does this illustrate? - Answer store of value
best illustrates the medium of exchange function of money? - Answer You pay for
your double latte using currency
lists ranks assets from most to least liquid? - Answer currency, stocks, fine art
characterizes fiat money? - Answer It has no intrinsic value.
included in M2 but not in M1? - Answer term deposits
How are credit card balances treated in M1+ as compared to M2++? - Answer
They are included in neither M1+ nor M2++
Which of the following does the Bank of Canada NOT do? - Answer make loans
to individuals
What is the role of the Bank of Canada? - Answer to make monetary policy
a characteristic of paper money? - Answer It is valuable because it is generally
accepted in trade.
Which of the following is one of the functions of the Bank of Canada? - Answer
to act as a lender of last resort
,Bank: Assets-
Reserves $25,000
Loans $155,000
Liabilities-
Deposits $180,000
If the bank is holding $5000 in excess reserves, what is the desired reserve ratio? -
Answer 1/9
If a bank uses $80 of excess reserves to make a new loan when the reserve ratio is
25 percent, what happens to the money supply? - Answer The money supply will
eventually increase by $320.
Which of the following lists contains only actions that increase the money supply?
- Answer lower the key policy rate; lower the reserve requirement ratio
How does the Bank of Canada conduct open market transactions? - Answer It
buys or sells government bonds from/to the public (commercial banks)
When the Bank of Canada conducts open market purchases, how do commercial
banks' assets most likely change? - Answer Reserves increase and commerical
banks increase lending
When the Bank of Canada decreases the key policy interest rate, commercial
banks will borrow more from the Bank of Canada. Which of the following best
describes the consequences of this process? - Answer Commercial banks lend
more to the public, and so the money supply will increase.
, Which of the following best describes the consequences of a decrease in the
reserve requirements in a fractional reserve system? - Answer Both the money
multiplier and the money supply increase.
Normative systems - Answer Systems governing human behavior across
communities.
Legal object - Answer Entity bearing rights and duties under law.
Reception of English law - Answer Adoption of English legal principles in South
Africa.
Common-law legal family - Answer Legal systems based on English common
law.
Ratio decidendi - Answer Legal reasoning behind a court's decision.
Plaintiff - Answer Party initiating a lawsuit in court.
Human dignity - Answer Fundamental right to respect and worth.
Executive authority - Answer Branch of government enforcing laws.
Bill of Rights - Answer List of fundamental rights in the Constitution.
Formal law - Answer Law requiring explicit, general, and impartial rules.
A+) 2024 (554240)
Mia puts money into a piggy bank so she can spend it later. Which of the following
functions of money does this illustrate? - Answer store of value
best illustrates the medium of exchange function of money? - Answer You pay for
your double latte using currency
lists ranks assets from most to least liquid? - Answer currency, stocks, fine art
characterizes fiat money? - Answer It has no intrinsic value.
included in M2 but not in M1? - Answer term deposits
How are credit card balances treated in M1+ as compared to M2++? - Answer
They are included in neither M1+ nor M2++
Which of the following does the Bank of Canada NOT do? - Answer make loans
to individuals
What is the role of the Bank of Canada? - Answer to make monetary policy
a characteristic of paper money? - Answer It is valuable because it is generally
accepted in trade.
Which of the following is one of the functions of the Bank of Canada? - Answer
to act as a lender of last resort
,Bank: Assets-
Reserves $25,000
Loans $155,000
Liabilities-
Deposits $180,000
If the bank is holding $5000 in excess reserves, what is the desired reserve ratio? -
Answer 1/9
If a bank uses $80 of excess reserves to make a new loan when the reserve ratio is
25 percent, what happens to the money supply? - Answer The money supply will
eventually increase by $320.
Which of the following lists contains only actions that increase the money supply?
- Answer lower the key policy rate; lower the reserve requirement ratio
How does the Bank of Canada conduct open market transactions? - Answer It
buys or sells government bonds from/to the public (commercial banks)
When the Bank of Canada conducts open market purchases, how do commercial
banks' assets most likely change? - Answer Reserves increase and commerical
banks increase lending
When the Bank of Canada decreases the key policy interest rate, commercial
banks will borrow more from the Bank of Canada. Which of the following best
describes the consequences of this process? - Answer Commercial banks lend
more to the public, and so the money supply will increase.
, Which of the following best describes the consequences of a decrease in the
reserve requirements in a fractional reserve system? - Answer Both the money
multiplier and the money supply increase.
Normative systems - Answer Systems governing human behavior across
communities.
Legal object - Answer Entity bearing rights and duties under law.
Reception of English law - Answer Adoption of English legal principles in South
Africa.
Common-law legal family - Answer Legal systems based on English common
law.
Ratio decidendi - Answer Legal reasoning behind a court's decision.
Plaintiff - Answer Party initiating a lawsuit in court.
Human dignity - Answer Fundamental right to respect and worth.
Executive authority - Answer Branch of government enforcing laws.
Bill of Rights - Answer List of fundamental rights in the Constitution.
Formal law - Answer Law requiring explicit, general, and impartial rules.
