the economics of money, banking, and financial markets

435 $

© 2014 Pearson Canada Inc.$

16. 
    

    Because of its unique power to ____ base money, the Bank of Canada can ease the
    liquidity problems of ____.
    A) create; financial institutions
    B) create; provincial governments
    C) save; financial institutions
    D) save; provincial governments
    Answer: A
    Diff: 2 Type: MC Page Ref: 356
    Skill: Recall
    Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
    specify the arguments for and against an independent central bank

    
    


17. 
    

    Changes in the ____ lead to ____ changes in the money supply.
    A) monetary base; multiple
    B) monetary base; equal
    C) inflation rate; multiple
    D) inflation rate; equal
    Answer: A
    Diff: 2 Type: MC Page Ref: 356 - 357
    Skill: Recall
    Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
    specify the arguments for and against an independent central bank

    
    


18. 
    

    Canada's national payments system currently clears and settles payments and transactions, at
    a volume that is currently ____ times our annual GDP.
    A) 15
    B) 10
    C) 5
    D) 2
    Answer: A
    Diff: 2 Type: MC Page Ref: 357
    Skill: Recall
    Objective List: 15.2 Identify the Bank of Canada's functions and degree of independence and
    specify the arguments for and against an independent central bank