An interest rate above equilibrium will lead to a surplus of money.

Question 16 options:

	a) True
	b) False

Question 17 (1 point)

What is fiscal policy?

Question 17 options:

a)	It is the use of interest rate policy by the central bank to stabilize an economy.

b)	It is the central bank's approach to interest rate policy.

c)	It is the total spending by all levels of government.

d)	It is the government's approach to its own spending and taxation.

Question 18 (1 point)

Which of the following are goals of monetary policy?

Question 18 options:

a)	maximizing the value of the dollar relative to other currencies, economic growth, and high employment

b)	price stability, economic growth, and maximizing the value of the dollar relative to other currencies

c)	price stability, maximizing the value of the dollar relative to other currencies, and high employment

d)	price stability, economic growth, and high employment

Question 19 (1 point)

What is an appropriate reason for the government to borrow money?

Question 19 options:

a)	To discourage waste in fiscal affairs.

b)	To encourage foreign ownership of the debt.

c)	To inject new spending into the economy.

d)	To compensate for a lower bond rating.

Question 20 (1 point)

Which of the following is one of the important routine functions of the Bank of Canada?

Question 20 options:

a)	To supply the economy with currency.

b)	To help new commercial banks sell securities.

c)	To help commercial banks establish good financial arrangements with foreign banks.

d)	To advise commercial banks as to the most profitable ways of reinvesting profits.

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