1.List the three main jobs the Bank has when managing the money supply

2. Name one difference between savings bonds and treasury bills, and two facts about each.

3. Briefly explain 9 factors that influence Canada's exchange rate?

4. How can a change in interest rates affect exchange rates and trade?

5. Fill in the the following table to indicate an easy money policy or a tight money policy would tend to increase or decrease for each item listed

Item	Easy money	Tight money
Consumer spending
Business investment
Interest rate
Bank lending
Money supply growth
Inflation
Unemployment

6. True or False : A stronger value for Canadian dollar boosts exports and restrains imports

How long does it take for monetary policy to have full effect on inflation?

7. Using the data in table below calculate the GDP using the expenditure approach. Make sure you identify all four components subtotal. (5marks)

Transfer payment	50
Interest Income	200
Depreciation	45
Wages	75
Gross Private Investment	135
Business Profits	200
Indirect Business Taxes	88
Rental income	24
Net Exports	108
Net Foreign Factor Income	92
Government Purchases	300
Household Consumption	550

8. Draw a model graph showing a shift in AD &AS under

1- Expansionary monetary pilcy

2- Contractionary monetary policy

9. Between expansionary and contractionary monetary policy, which policy do you think is better in general If Alberta is experiencing an economic boom, while If Alberta is experiencing an economic boom, while should the Bank of Canada use for the whole nation?