Money and Banking MCQs

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Economists have developed explanations linking variations in the volume of money in circulation to all of the following except:






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Increases in the money supply cause






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Inflation is






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A significant development in the past two decades in the financial system has been






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Prior to the 1960s, Canada’s financial system used to fit into the following categories






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Financial Intermediaries of today are






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Among countries of the G-7






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Historically, short-term interest rates have usually been _______ long-term interest rates.






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Interest rate movements in the G-7 countries






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The transmission mechanism






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Expectations about inflation are






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Who said "Inflation is always and everywhere a monetary phenomenon?"






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Hyperinflation is a situation in which the monthly inflation rate exceeds






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In 1999, Canada’s exports plus imports reached approximately what proportion of GDP?






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Barter is inconvenient because






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Compared to barter system, a monetary system






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The functions of money are






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A medium of exchange is






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A unit of account






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Store of value






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Transaction costs






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The primary function of money is






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History has produced two broad monetary standards






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Under a fiat-money standard the value of the circulating medium of exchange is guaranteed by






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The superiority of one monetary standard over another is dictated as






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A gold standard is a monetary system wherein the exchange rate is determined by






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Gresham’s law stipulates that






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Bimetallism is a monetary system






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One popular media of exchange that existed during the Canada’s early French colonial period was






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A central bank






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The Bank of Canada






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The money supply






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M1 is defined as






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M2 is defined as






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M1+ is defined as






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M1 ++ is defined as