the economics of money, banking, and financial markets

84 #

© 2014 Pearson Canada Inc.#

19. 
    

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

    
    


20. 
    

    If an individual moves money from a money market mutual fund to currency, ____.
    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: 2 Type: MC Page Ref: 54
    Skill: Applied
    Objective List: 3.4 Explain money measurement matters

    
    


21. 
    

    The currency component of M2 shows that there is ____ in cash in the hands of each
    person in Canada.
    A) $150
    B) $15,000
    C) $1500
    D) $15
    Answer: C
    Diff: 1 Type: MC Page Ref: 56
    Skill: Recall
    Objective List: 3.4 Explain money measurement matters

    
    


22. 
    

    The measures of money supply used by the Bank of Canada are ____ indices.
    A) simple-sum
    B) complex
    C) multiplicative
    D) accurate
    Answer: A
    Diff: 2 Type: MC Page Ref: 57
    Skill: Recall
    Objective List: 3.4 Explain money measurement matters