Every morning, you go for a run and you a coffee at Tim Hortons, so you put a toonie ($2) in your pocket on your way out the door. what is the motive for holding money on this case?

A- Transactions

B- precautionary

C- speculative

D- Reserves

Jack is an investor who believes that the risk financial investment has increased, so he sells his bonds and hods cash instead. what is the motive for holding money on this case?

A- Transactions

B- precautionary

C- speculative

D- Reserves

If the Canadian economy recovers quickly from the covid19 pandemic and inflation starts to rise, what is the bank of canada is likely to do.

a- it will rise the target for the overnight interest rate

b- it will print currency in order to increase the money supply

c- it will lower the target for the overnight in interest rate

d- it will take currency out of circulation in order to decrease the money supply

e- it will increase government purchases pdf goods and services