the economics of money, banking, and financial markets

83 #

© 2014 Pearson Canada Inc.#

15. 
    

    Which of the following is included in M2+ but not in M2?
    A) Personal deposits
    B) Demand deposits
    C) Currency
    D) Money market mutual funds
    Answer: D
    Diff: 1 Type: MC Page Ref: 54
    Skill: Recall
    Objective List: 3.4 Explain money measurement matters

    
    


16. 
    

    Of the following, the largest is ____.
    A) money market deposit accounts
    B) demand deposits
    C) M1+
    D) M2+
    Answer: D
    Diff: 1 Type: MC Page Ref: 54
    Skill: Recall
    Objective List: 3.4 Explain money measurement matters

    
    


17. 
    

    If an individual redeems a Canada savings bond for currency, ____.
    A) M1+ stays the same and M2 decreases
    B) M1+ increases and M2 increases
    C) M1+ increases and M2 stays the same
    D) M1+ stays the same and M2 stays the same
    Answer: B
    Diff: 3 Type: MC Page Ref: 54
    Skill: Applied
    Objective List: 3.4 Explain money measurement matters

    
    


18. 
    

    If an individual moves money from a notice deposit to a chequing account, ____.
    A) M1+ increases and M2 stays the same
    B) M1+ stays the same and M2 increases
    C) M1+ stays the same and M2 stays the same
    D) M1+ increases and M2 decreases
    Answer: D
    Diff: 3 Type: MC Page Ref: 54
    Skill: Applied
    Objective List: 3.4 Explain money measurement matters