Question: Just need question 4, written response Ql. Consider each type of asset in terms of its potential use as a medium of exchange, a unit

Just need question 4, written response

Just need question 4, written response Ql. Consider each type of asset

Ql. Consider each type of asset in terms of its potential use as a medium of exchange, a unit of wer. Indicate which use is most appropriately account, and a store of value or purchasing po associated with each asset. a) One Apple Share b) A $20 Bank of Canada note c) A chequing account in a credit union in Alberta (3 marks) Q2. "A decrease in notice deposits will decrease M1, M2, and M3." Evaluate this statement and explain your answer. (3 marks) Q3. Consider the following items on a commercial bank's balance sheet and choose if it's an asset or a liability to the commercial bank. a) An auto loan to an individual is to a commercial bank. b) Funds borrowed from a credit union in the money market is to a commercial bank. c) A customer's savings deposit is to a commercial bank. d) The bank's desired reserves are to a commercial bank. (4 marks) Q4. If the desired reserve ratio is 8%, what will be the maximum change in the money supply in each of the following situations? Show step by step calculations including formulas and round your answers to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!