Term
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Definition
| Used to buy and sell goods in an economy. |
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Term
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Definition
| Able to be used to sell and buy goods. |
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Term
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Definition
| Divisible, post and record prices. |
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Term
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Definition
| Retains its value over time; purch. power from present to future. |
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Term
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Definition
| How easily accessible money is. |
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Term
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Definition
| Has worth regardless of its designation as money or not (gold, silver). |
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Term
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Definition
| Only worth money because gov't designates it as such (bills). |
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Term
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Definition
| Bills and coins in the hands of the public. |
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Term
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Definition
| Money accessible by writing a cheque or debit card (chequing acct.). |
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Term
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Definition
| Institution designed to regulate money supply. |
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Term
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Definition
| Supply of money in the economy. |
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Term
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Definition
| Setting of money supply by policymakers in central bank. |
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Term
| If commercial banks hold all deposits in reserve, they ____ money supply. |
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Definition
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Term
| Fractional-reserve system |
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Definition
| When banks only hold a certain percentage (not 100) of their deposits in reserve. |
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Term
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Definition
| Fraction of deposits that banks hold in reserve. |
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Term
| Money Multiplier + equation |
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Definition
The amount that banks loans/reserves multiply the money supply.
Equation: 1/(RESERVE RATIO) AKA RECIPROCAL OF RESERVE RATIO. |
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Term
| Open-Market Operations (OMO) |
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Definition
| Purchase or sale of Gov't of Can (GoC) bonds by the Bank of Can (BoC). |
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Term
| Foreign Exchange of Market Operations (FEMO) |
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Definition
| Purchase or sale of foreign money by BoC. |
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Term
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Definition
| Cancelling out the effect of money supply changes by offsetting FEMO with OMO. |
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Term
| Reserve Equipments (rules) |
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Definition
| Regulations on minimum amount of reserves that banks must hold against deposits. |
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Term
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Definition
| Interest rate charged by BoC on loans to commercial banks. |
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Term
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Definition
| Interest rate on short-term loans between commercial banks. |
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Term
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Definition
| Currency in circulation + personal chequing + non-personal accts. |
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Term
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Definition
| M1 + personal savings, pers. term deposits and non-personal notice deposits. |
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Term
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Definition
| M2 + deposits at trust and mortgage companies, credit unions and caisses populaires + money market mutual funds |
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Term
| Barter System # of relative prices |
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Definition
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