The action of individuals or private institutions buying a newly issued Canada Savings Bond or a treasury bill:

Question 26 options:

a)	decrease the size of the government's debt.

b)	is borrowing by the government to finance a budget deficit.

c)	is a result of a government budget surplus.

d)	is unrelated to both government budget surpluses and deficits.

Question 27 (1 point)

Monetary policy refers to the actions the central bank takes to manage

Question 27 options:

a)	income tax rates and interest rates to pursue its economic objectives.

b)	government spending and income tax rates to pursue its economic objectives.

c)	the money supply and income tax rates to pursue its economic objectives.

d)	the money supply and interest rates to pursue its economic objectives.

Question 28 (1 point)

___________ determines the supply of money.

Question 28 options:

a)	The demand for money

b)	The Bank of Canada

c)	The level of nominal income

d)	The interest rate

Question 29 (1 point)

Which of the following is true about the Bank of Canada?

Question 29 options:

a)	All of these.

b)	It is the bankers' bank.

c)	It is state-owned.

d)	It the sole issuer of the economy's currency.

Question 30 (1 point)

What is the effect of expansionary monetary policy?

Question 30 options:

a)	An increase in the money demand leading to an increase in the interest rate, and an increase in investment spending, causing an increase in GDP.

b)	An increase in the money supply leading to an increase in the interest rate, and an increase in investment spending, causing an increase in GDP.

c)	An increase in the money supply leading to a decrease in the interest rate, and an increase in the quantity of investment spending, causing an increase in GDP.

d)	An increase in the money supply leading to an increase in the interest rate, and a decrease in investment spending, causing a decrease in GDP.

Previous PageNext Page

Page 6 of 8

Submit Quiz3 of 40 questions saved