Notes in circulation are A. a liability to the Bank of Canada B. an asset to...
Notes in circulation are
| A. |
a liability to the Bank of Canada |
|
| B. |
an asset to the Bank of Canada |
|
| C. |
an asset to chartered banks |
|
| D. |
a liability to chartered banks |
|
| E. |
neither an asset nor a liability to any bank |
Homework Answers
Answer
Option A
liability to the Bank of Canada
Notes in circulation are a liability to the bank of Canada and it is liability without any interest payment and can be called on-demand.
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Notes in circulation are
A.
a liability to the Bank of Canada
B.
an asset to...
14. a. If the Bank of Canada wanted to decrease the money supply, the Bank would...
14. a. If the Bank of Canada wanted to decrease the money supply, the Bank would buys bonds from the Chartered Banks. (Primary dealers) b. decreases the fixed operating band for overnight lending. decreases the bank rate. d. sells government securities to the Chartered Banks. (Primary dealers) provides more loans to the Chartered Banks through the Standing Liquidity Facility. c. e. 15. The Bank of Canada purchases $5 million worth of government securities (government bonds) from the Chartered Banks. The...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank of Canada buys $100 billion worth of government bonds of chartered banks. Assuming the desired reserve ratio is 20%, in this process, a) Bank of Canada's assets increase by $100b. b) Bank of Canada's assets decrease by $100b. c) chartered banks' deposits at the Bank of Canada decrease by $100b. d) chartered banks' deposits at the Bank of Canada increase by $100b. e) chartered...
Assume that the Bank of Canada purchases $50 million of federal government bonds from Lucky Bank....
Assume that the Bank of Canada purchases $50 million of federal government bonds from Lucky Bank. Bank of Canada bond purchases from Lucky Bank a) should lead to the creation of new money b) should force chartered banks to decrease the stock of money c) have no impact on the quantity of money.
Economics
Use the consolidated balance sheet of chartered banks in Canada and the balance sheet of the Bank of Canada to demonstrate the effect of each of the following transactions on chartered bank reserves. a. The Bank of Canada purchases securities from banks. Assume that the initial reserve ratio is 20 percent. b. Chartered banks borrow $1 billion from the Bank of Canada at the bank rate. c. The chartered banks reduce their desired reserve ratio. Assume that the reserve ratio...
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also...
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also includes O A) deposits at trust companies, caisse populaires and foreign-currency accounts O B) coins in circulation. OC) money market mutual funds held by the Bank of Canada. OD) paper currency. OE) deposits at financial institutions other than the chartered banks. Question 28 (1 point) Saved The functions of the Bank of Canada include O A) acting as the lender of last resort for...
Bank runs a. will affect neither the money supply nor the money multiplier. b. increase the...
Bank runs a. will affect neither the money supply nor the money multiplier. b. increase the money supply c. can be neither prevented nor mitigated by the Federal Reserve. d. are a problem because banks only hold a fraction of deposits as reserves.
96) Assume the desired reserve ratio is 25 percent and the Bank of Canada buys $4...
96) Assume the desired reserve ratio is 25 percent and the Bank of Canada buys $4 million of securities from the public. As a result of this transaction the supply of money is: A) directly increased by $4 million and the money-creating potential of the chartered banking system is increased by $16 million. B) directly reduced by $4 million and the money-creating potential of the chartered banking system is decreased by $12 million. C) directly increased by $4 million and...
96) Assume the desired reserve ratio is 25 percent and the Bank of Canada buys $4 million of secu...
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A smaller bank specializing in consumer-oriented banking services is called a(n) __________________. A. community bank B. ...
A smaller bank specializing in consumer-oriented banking services is called a(n) __________________. A. community bank B. money center bank C. central bank D. FDIC E. superregional bank 7. The difference between a commercial bank’s average rate earned on loans and its average rate paid on deposits is called the: A. charge-off rate. B. net operating income. C. return on assets. D. money market rate. E. interest rate spread. 8. Measured by asset size, _________________________ represent the largest group of depository...
In March 2020, the European Central Bank, the Bank of Canada, and the Federal Reserve (and...
In March 2020, the European Central Bank, the Bank of Canada, and the Federal Reserve (and other central banks) began to consider measures to address the economic consequences of the Covid-19 virus. These measures might include A. buying government securities, increasing the bank rate, and relaxing regulations on bank loan and reserve requirements B. selling government securities, increasing the bank rate, and relaxing regulations on bank loan and reserve requirements C. buying government securities, decreasing the bank rate, and relaxing...
14. a. If the Bank of Canada wanted to decrease the money supply, the Bank would buys bonds from the Chartered Banks. (Primary dealers) b. decreases the fixed operating band for overnight lending. decreases the bank rate. d. sells government securities to the Chartered Banks. (Primary dealers) provides more loans to the Chartered Banks through the Standing Liquidity Facility. c. e. 15. The Bank of Canada purchases $5 million worth of government securities (government bonds) from the Chartered Banks. The...
Question 44 (1 point) Assume that, in the process of an open market operation, the Bank of Canada buys $100 billion worth of government bonds of chartered banks. Assuming the desired reserve ratio is 20%, in this process, a) Bank of Canada's assets increase by $100b. b) Bank of Canada's assets decrease by $100b. c) chartered banks' deposits at the Bank of Canada decrease by $100b. d) chartered banks' deposits at the Bank of Canada increase by $100b. e) chartered...
Question 27 (1 point) Saved The main distinction between M2 and M2+ is that M2+ also includes O A) deposits at trust companies, caisse populaires and foreign-currency accounts O B) coins in circulation. OC) money market mutual funds held by the Bank of Canada. OD) paper currency. OE) deposits at financial institutions other than the chartered banks. Question 28 (1 point) Saved The functions of the Bank of Canada include O A) acting as the lender of last resort for...
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