ECON 248 Unit 4 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2026
As a measure of money stock, M1+ in Canada comprises
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
Which of the following actions by the Bank of Canada would decrease the money
supply?
, Select one:
a. quantitative easing
b. a decrease in the overnight rate
c. a decrease in banks' reserve requirements
d. an open-market purchase of government bonds
e. an open-market sale of government bonds - ANSWERS e. an open-market
sale of government bonds
If a customer of a bank makes a withdrawal from their chequable deposit account,
Select one:
a. the bank's reserve ratio remains the same.
b. M2 decreases.
c. M1+ decreases.
d. the bank's reserve ratio increases.
e. the bank's reserve ratio decreases. - ANSWERS e. the bank's reserve ratio
decreases.
A commercial bank has capital of $5000 and a leverage ratio of 10. If the value of
the bank's assets increases by 5%, then its capital has _____ to ______.
Select one:
a. increased / $7,500
b. increased / $5,500
c. decreased / $4,500
d. decreased / $4,000
e. decreased / $2,500 - ANSWERS a. increased / $7,500
DETAILED ANSWERS (VERIFIED ANSWERS) |
GRADED A+ | NEW UPDATE 2026
As a measure of money stock, M1+ in Canada comprises
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
Which of the following actions by the Bank of Canada would decrease the money
supply?
, Select one:
a. quantitative easing
b. a decrease in the overnight rate
c. a decrease in banks' reserve requirements
d. an open-market purchase of government bonds
e. an open-market sale of government bonds - ANSWERS e. an open-market
sale of government bonds
If a customer of a bank makes a withdrawal from their chequable deposit account,
Select one:
a. the bank's reserve ratio remains the same.
b. M2 decreases.
c. M1+ decreases.
d. the bank's reserve ratio increases.
e. the bank's reserve ratio decreases. - ANSWERS e. the bank's reserve ratio
decreases.
A commercial bank has capital of $5000 and a leverage ratio of 10. If the value of
the bank's assets increases by 5%, then its capital has _____ to ______.
Select one:
a. increased / $7,500
b. increased / $5,500
c. decreased / $4,500
d. decreased / $4,000
e. decreased / $2,500 - ANSWERS a. increased / $7,500
