QUESTION 1 The least liquid of the following assets is O a. Chequing accounts O b. Savings accounts O c. Government savings bonds O d. Cash QUESTION 2 The Canadian dollar is O a. Fiat money O b. Backed by gold O c. Backed by Canada's vast resources O d. None of the above QUESTION 3 The money supply that includes only currency. demand deposits, and money in savings accounts is called O a. M1 O b. M2 O C. M3 O d. None of the aboveQUESTION 4 What is the largest component of M1? O a. Certificates of deposit O b. Demand deposits O c. Notice deposits O d. Currency QUESTION 5 Lowering the bank rate. other things being equal, would tend to Increase dollar volume of loans made by the banking system Increase the money supply O Increase aggregate demand O All of the above QUESTION 6 The current governor of the Bank of Canada is O a. Stephen Harper O b. Tiff Macklem O c. Janet Yellen O d. Jerome PowellQUESTION 7 What is the name of the interest rate that the Bank of Canada charges to chartered banks? a. The prime rate O b. The bank rate O c. The overnight target rate O d. None of the above QUESTION 8 Money that has value only because it may be used as money is referred to as O a. Fiat money O b. Gold O c. Wealth O d. Commodity money QUESTION 9 The necessary properties of money do NOT include O a. Divisibility O b. Backing by gold O c. Durability O d. AcceptabilityQUESTION 10 If the target reserve ratio increases, the O a. Interest rates will fall O b. Money multiplier increases O c. Money multiplier decreases O d. Money supply increases