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What are the 3 functions of $?
What are the 2 kinds of money that can exist in an economy?
What is the $ Stock?
What elements are included in the money stock?
What does the BIG 5 refer to?
What is the goal of the Central Bank?
What are the 4 Jobs done by the Bank Of Canada?
How does the Bank of Canada influence the interest rate in an economy?
What are reserves, in a bank?
In a fractional-reserve banking system, what are liabilities?
In a fractional-reserve banking system, what are assets?
In a fractional-reserve banking system, what is the reserve ratio?
In a fractional-reserve banking system, what is the money multiplier?
In a fractional-reserve banking system, how is the bank capital earned?
How does a bank generate profits?
What is the money multiplier?
What occurs if a bank's assets fall below the amount of liabilities?
What are capital requirements?
What are the Bank of Canada's 2 monetary control tools
What is B.O.C's interest rate?
What is the overnight rate?
How does the Overnight% contribute to control the $ supply?
What 3 open market operations contribute to the control of the $ supply
Define Quantitative easing:
Define Foreign exchange market operations:
How does a change in reserve requirement affect the $ supply?
What are the two problems that the B.O.C while trying to control the $ supply?
What is the relation between price level and monetary value?
What factors affect the demand of $ in an economy?
Quantity Theory is:
What is the immediate effect of money injection?
How does the money supply find an equilibrium after a monetary injection?
How doe the classical dichotomy suggest the variables should be separated in an economy?
What does the monetary neutrality theory propose?
What does the velocity of money refer to?
How do you explain the inflation rate using the velocity theory?
What is an Inflation tax?
What is one way the Gov. can put an end to inflation?
What does the Fisher effect state?
What are the 3 costs of inflation?
Law makers often omit inflation. What types of income are affected by this?
Interest must be paid on a loan. How does hyperinflation affect The Borrower?
Interest must be paid on a loan. How does deflation affect The Borrower?
What two markets can be found in an open economy?
Net Export determine it's what about a country in an open economy?
Which 6 factors influence the trade balance?
Which 4 variables influence the Net Capital Outflow?
In an open economy, what constitutes a country's national savings?
Which international transaction depends on the Nominal Exchange rate?
What is the difference between the appreciation and the depreciation of a currency?
Define real exchange rate
What is the purchasing-power parity?
What is the law of one price?
If the law of one price is not applied, what is at risk of happening?
Define arbitrage:
What are the limitations of the PPP?
Define small open economy with perfect capital mobility:
What is the interest rate parity, and how does it differ from the purchase price parity?
What are the two limitations of interest rate parity?
A macroeconomic theory of a small open economy takes three things as given. What are they?
What is the goal of a macroeconomic model of a small open economy?
Which elements are taken into account on the international market for loanable funds?
Which elements are taken into account on the international market for currency exchange?
In a small open economy, how are national savings computed?
True of false: the quantity of loanable funds supplied by savings and the quantity demanded for invested must for the market to move forward?
What id the driving force of the market for foreign currency exchange?
Define the Real Exchange Rate?
How does appreciation differ fro appreciation?
Which element links the market for foreign currency exchange and the market for loanable funds?
