the economics of money, banking, and financial markets

459 $

© 2014 Pearson Canada Inc.$

Economics of Money, Banking & Financial Markets, 5e (Mishkin)
Chapter 16 The Money Supply Process

16.1 Three Players in the Money Supply Process

1. 
   

   The government agency that oversees the banking system and is responsible for the conduct of
   monetary policy in Canada is ____.
   A) the Bank of Canada
   B) the Department of Finance
   C) the Canada Customs and Revenue Agency
   D) the House of Parliament
   Answer: A
   Diff: 1 Type: MC Page Ref: 375
   Skill: Recall
   Objective List: 16.1 Summarize the Bank of Canada's balance sheet and the monetary base

   
   


2. 
   

   Individuals that lend funds to a bank by opening a chequing account are called ____.
   A) policyholders
   B) partners
   C) depositors
   D) debt holders
   Answer: C
   Diff: 1 Type: MC Page Ref: 375
   Skill: Recall
   Objective List: 16.1 Summarize the Bank of Canada's balance sheet and the monetary base

   
   


3. 
   

   The three players in the money supply process include ____.
   A) banks, depositors, and the Department of Finance
   B) banks, depositors, and borrowers
   C) banks, depositors, and the central bank
   D) banks, borrowers, and the central bank
   Answer: C
   Diff: 1 Type: MC Page Ref: 375
   Skill: Recall
   Objective List: 16.1 Summarize the Bank of Canada's balance sheet and the monetary base

   
   


4. 
   

   Of the three players in the money supply process, most observers agree that the most
   important player is ____.
   A) the Bank of Canada
   B) the Department of Finance
   C) the Canada Customs and Revenue Agency
   D) the House of Parliament
   Answer: A
   Diff: 1 Type: MC Page Ref: 376
   Skill: Recall
   Objective List: 16.1 Summarize the Bank of Canada's balance sheet and the monetary base