the economics of money, banking, and financial markets

80 #

© 2014 Pearson Canada Inc.#

3. 
   

   Defining money becomes ____ difficult as the pace of financial innovation ____.
   A) less; quickens
   B) more; quickens
   C) more; slows
   D) more; stops
   Answer: B
   Diff: 1 Type: MC Page Ref: 53
   Skill: Recall
   Objective List: 3.4 Explain money measurement matters

   
   


4. 
   

   Monetary aggregates are ____.
   A) measures of the money supply reported by the Bank of Canada
   B) measures of the wealth of individuals
   C) never redefined since "money" never changes
   D) reported by the Department of Finance annually
   Answer: A
   Diff: 1 Type: MC Page Ref: 53
   Skill: Recall
   Objective List: 3.4 Explain money measurement matters

   
   


5. 
   

   Recent financial innovation makes the Bank of Canada's job of conducting monetary policy
   ____.
   A) easier, since the Bank of Canada now knows what to consider money
   B) more difficult, since the Bank of Canada now knows what to consider money
   C) easier, since the Bank of Canada no longer knows what to consider money
   D) more difficult, since the Bank of Canada no longer knows what to consider money
   Answer: D
   Diff: 1 Type: MC Page Ref: 53
   Skill: Recall
   Objective List: 3.4 Explain money measurement matters

   
   


6. 
   

   ____ is the narrowest monetary aggregate that the Bank of Canada reports.
   A) M0
   B) M1+
   C) M2
   D) M3
   Answer: B
   Diff: 1 Type: MC Page Ref: 53
   Skill: Recall
   Objective List: 3.4 Explain money measurement matters