Hard
The functions of money are to serve as a:
unit of account, store of value, and medium of exchange.
If you write a cheque on a bank in Saskatoon to purchase a new Nissan Murano, you are employing money as:
a medium of exchange.
What function is money serving when you buy a ticket to a movie?
A medium of exchange
When we say that money serves as a medium of exchange, we mean that it is:
a means of payment.
One major advantage of the medium of exchange function of money is that it allows society to:
escape the complications of barter.
Money eliminates the need for a coincidence of wants primarily through its use as a:
medium of exchange
Purchasing common stock by writing a cheque best exemplifies money serving as a:
medium of exchange.
If you are estimating your total expenses for school next semester, you are using money as:
a unit of account.
If the desired reserve ratio were 15 percent, the value of the monetary multiplier would be:
6.7
The greater the desired reserve ratio, the:
lower is the monetary multiplier.
If actual reserves in the banking system are $50,000, excess reserves are $5,000, and demand deposits are $225,000, then the money multiplier:
is 5.
The multiple by which the chartered banking system can expand the supply of money on the basis of excess reserves:
is larger the smaller the desired reserve ratio.
If the desired reserve ratio is 15 percent and chartered bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired demand deposits, then the relevant money multiplier for the banking system will be:
5
For a bank, safety lies in:
Liquidity
The greater the leverage in the financial system, all else equal,
the greater the instability of the financial system.
Leverage in the financial system
Magnifies both profits and losses
The difference between M1+ and M2 is that:
the latter includes personal saving deposits and non-personal notice deposits.
The M2+ definition of the money supply includes:
M2 plus the deposits at trust and mortgage companies, credit unions, caisses populaires, and government savings institutions, plus money market mutual funds and life insurance annuities.
Token money is:
minted by the Royal Canadian mint.
Coins and paper money are:
debts of the Bank of Canada.
Demand deposits are:
debts of chartered banks and other financial institutions.
Fiat money is valuable because:
it is generally acceptable.
If the value of the dollar is falling, then it follows that:
The price index is rising.
When we say that the Canadian banking system is fractional reserve system, it means:
chartered banks loan out most of their deposits, keeping only a small percentage of their deposits to meet everyday cash withdrawals.
Which of the following statements best describes the relationship between the real value or purchasing power of the monetary unit and the price level? The purchasing power of money:
and the price level varies inversely.