In Canada, transactions among banks and other financial institutions takes place through the Large Value Transfer System
Question:
In Canada, transactions among banks and other financial institutions takes place through the Large Value Transfer System (LVTS) operated by the Bank of Canada. During 2015, 8.1 million payments were made through LVTS, with a total value of $43.03 trillion. To put this in context, GDP in 2015 was $1.97 trillion, so the total dollar volume of transactions through the LVTS was 22-fold larger than GDP. Do these statistics indicate that there might be some large measurement error in the official national income and expenditure accounts, or is this entirely consistent with official GDP numbers being accurate measures of aggregate economic activity? Explain, and discuss your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The dollar value of a transaction need not all be a contribution to GDP Indeed typically only a f...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
3+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
