Money ___________________.

is any commodity that is generally acceptable as a means of payment
loses its value as it becomes older
is a medium of exchange that requires a double coincidence of wants
is always composed of coins and paper

If an economy has no money, then all transactions must be conducted through the use of _______________.

barter
tobacco or wampum
debit cards
credit cards

Canadian currency _____________________.

is money because the government of Canada declares it to be so
includes store coupons
is the notes that we use for payment of debts
has intrinsic worth

Bank deposits _________________.

are money
and debit cards are money
and cheques are money
is not really money because they cannot be seen

M1 includes all of the following except ________________________.

personal savings deposits at chartered banks
business demand deposits at chartered banks
personal demand deposits at chartered banks
currency held by households and firms outside the banks

M2+ ___________________.

is a broader measure of money than M1
is a narrower measure of money than M1
includes foreign currency deposits in chartered banks in Canada
does not include currency held outside banks by households and firms

Liquidity _________________.

is the property of being instantly convertible into money without much loss of value
increases when a country owns gold
increases when a consumer has more credit cards
is how quickly an asset loses its worth

A depository institution is a firm that takes deposits from _______ and makes loans to _______.

households and firms; other households and firms
firms; other firms
households; firms
firms; households

The balance sheet of a chartered bank can be described by the following equation:

Assets = Liabilities + Net worth
Net worth + Assets + Liabilities = 1
Net worth + Assets = Liabilities
Liabilities + Assets = Net worth

A bank's reserves are the ___________in the bank's vaults plus ______________.

cash; its deposits at the Bank of Canada
cash; the cash carried by its customers
gold; its gold at the Bank of Canada
cash; its gold at the Bank of Canada

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