1)
In the consolidated balance sheet of the Bank of Canada, loans
to chartered banks are:
Multiple Choice
an asset of the Bank of Canada and chartered banks.
an asset of the Bank of Canada and a liability for chartered
banks.
a liability of the Bank of Canada and chartered banks.
a liability of the Bank of Canada and an asset for chartered
banks.
2)
A $200 price tag on a cashmere sweater in a department store
window is an example of money functioning as a:
Multiple Choice
medium of exchange.
standard of deferred payments.
unit of account.
store of value.
3)
Refer to the information below which shows the demand deposits
and actual reserves of a banking system. When the desired reserve
ratio is 20 percent, the money creating potential of the entire
banking system is:
(1)
(2)
(3)
Desired Reserve ration,
percent
Demand
deposits
Actual Cash
reserves
10
$40,000
$10,000
20
40,000
10,000
25
40,000
10,000
30
40,000
10,000
Multiple Choice
$6,000
$4,000
$10,000
$8,000