The Amount of Currency in Circulation in the Canadian Economy

question 87

Multiple Choice

The amount of currency in circulation in the Canadian economy is described as being endogenous to the system.This description is appropriate because

• A)the process of deposit creation by the commercial banks is determined by the Bank of Canada.
• B)the commercial banks determine the currency in circulation in response to the Bank of Canada's changes to the money supply.
• C)the Bank of Canada conducts its open-market operations in response to the changing demand for cash from the commercial banks.
• D)the Bank of Canada targets the money supply directly.
• E)the Bank of Canada targets the currency in circulation directly.

---

Definitions:

Muscle Tone

The continuous and passive partial contraction of the muscles, which helps maintain posture.

Comparator

In general terms, a device or system that compares two items or signals and determines their relationship or difference.

Intended Movements

Movements that are planned or decided upon before they are executed, involving cognitive processes.

Sensory Stimuli

External or internal factors that can elicit a response from sensory organs, leading to a sensation.