Money, banking & monetary pol (12)

Question 1

M1

Answer 1

CURRENCY IN CIRCULATION + DEMAND DEPOSITS

Question 2

M1 +

Answer 2

currency in circulation + personal and non personal demand deposits with banks and non banks

Question 3

m2

Answer 3

currency in circulation + personal and non personal demand and savings deposits + personal term deposits with chartered banks

Question 4

m3

Answer 4

m2 + non personal term and foreign currency deposits with banks

Question 5

near money

Answer 5

Canada saving bonds, treasury bills, commercial paper and bankers acceptances, money market mutual funds

Question 6

Money substitutes

Answer 6

visa, Mastercard, credit card

Question 7

charteted banks

Answer 7

receive their license to operate from the fed gov
federally sponsored
main activities : 1) deposit services, 2) lending services, 3) payment services

Question 8

open end mutual funds

Answer 8

continually issue their own comon shares and redeem these shares on demand

Question 9

close end funds

Answer 9

issue shares when fund commences business or at other infrequent periods . do not have cash flow invest or regularly newly issued shares

Question 10

insurance company

Answer 10

1) life insurance
2) accident and health insurance
3) property and casualty insurance