The most important means available to the Bank of Canada to manage the money supply is:

a) shifting government deposits

b) setting the exchange rate for the C$

c)open market operations

d) setting reserve requirements

e) changing the bank rate

The value of the money multiplier may be calculated from the formula:

a) 1/MPW

b) 1/reserve ratio

c) 1/desired reserves

d) 1/MPC

e) 1/excess reserves

Canadian currency today is an example of:

a) convertible paper money

b) Monopoly Money

c) fractionally backed gold-convertible money

d) fiat money

e) commodity money

The bank rate refers to:

a) the rate at which chartered banks fail each year

b) the rate of interest banks charge their best customers

c) the interest rate the Bank of Canada charges on loans to chartered banks

d) the rate of growth of the money supply

e) the rate of interest paid on government securities