The Largest Component of the Assets of the Bank of Canada

question 18

Multiple Choice

The largest component of the assets of the Bank of Canada is

• A)Government of Canada securities.
• B)Government of Canada deposits.
• C)notes and coins in circulation.
• D)loans to commercial banks.
• E)loans to private individuals.

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Definitions:

Socially Optimal

A condition or outcome that maximizes societal welfare, considering both efficiency and equity among members of society.

Marginal Cost

The spending required to create an additional unit of a good or service.

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service, crucial for making decisions about production quantities and pricing.

Pure Monopoly

A market structure where a single seller completely dominates the market, facing no competition.