ECONOMICS Questions

Why did the government decide to set up the Bank of Canada in 1934? The government decided to set up the Bank of Canada in 1934 in order to CI 11. take the monetary control over the economy away from the Treasury Department. C} B. and the instability created by a savings and loan asco that occurred during that time. C} (I. end the instability created by bank panics by acting as a lender of last resort. C} D. end the instability created by a huge crude oil price hike during that time. The formula for the simple deposit multiplier is OA. O B. Simple Deposit Multiplier = 1 -ro Simple Deposit Multiplier = _ O C. - Id OD. (1 -'d) Simple Deposit Multiplier = 1 -d Simple Deposit Multiplier = d If the desired reserve ratio is 0.10, the maximum increase in chequing account deposits that will result from an increase in bank reserves of $20,000 is $ . (Enter your response as an integer.)Why does the Bank of Canada use six definitions of the money supply rather than one? The Bank of Canada uses six definitions of the money supply, M1+, M1++, M2, M2+, M2++, and M3, because O A. M1 is a narrow definition focusing more on liquidity, whereas M3 is a broader definition of the money supply. O B. M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of value function. O C. M3 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the money supply. O D. M2 is also known as cash and cash equivalent, whereas M1 represents the standard of deferred payment function.Using the following information what is the velocity of money? Component Value Money supply $1,200 Price level 1.25 Real GDP $15,000 The velocity of money is equal to: (enter your answer rounded to two decimal places)