Site MapHelpFeedbackTrue or False
True or False
(See related pages)

1
Money acts as a medium of exchange, a store of wealth, and a unit of account.
A)True
B)False
2
Individuals in a society that had no medium of exchange would be forced to use barter to exchange goods.
A)True
B)False
3
The most important characteristic of money is that it be portable.
A)True
B)False
4
Canada’s largest commercial bank is the Bank of Canada.
A)True
B)False
5
M1 is defined as currency in circulation plus notice deposits in commercial banks.
A)True
B)False
6
The target reserve ratio is that portion of a bank’s deposits that it wishes to loan out.
A)True
B)False
7
The spread is the difference between the interest rate that a bank pays to borrowers and the interest rate it charges depositors.
A)True
B)False
8
A bank will try to lend out all of its excess reserves.
A)True
B)False
9
The bank rate is the rate of interest that the Bank of Canada charges a commercial bank for a loan.
A)True
B)False
10
If some of the recipients of bank loans keep a portion of the loan in the form of cash, the money expansion process would expand.
A)True
B)False





To learn more about the book this website supports, please visit its Information Center.
Copyright (c)2015 McGraw-Hill Education .
Any use is subject to the Terms of Use and Privacy Notice | Report Piracy


Principles of MacroeconomicsOnline Learning Center

Home > Chapter 8 > True or False