The Money Supply in Canada Is Measured Using M1, M2

question 69

Multiple Choice

The money supply in Canada is measured using M1, M2, M2+, and M3. The reason there are so many measures of the money supply is that

• A)it is a convenient way for provincial and federal governments to hide their budgetary surpluses.
• B)only the newer and broader measurements are correct but the older measurements are still used so that historical comparisons are possible.
• C)the Bank of Canada wants to confuse the general public.
• D)different kinds of bank accounts represent different functions of money, and so the various measures are used to reflect these different functions.
• E)the money supply is too large to have only one measurement.

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Definitions:

Variables

Elements, features, or factors that can change or vary, often used in experiments to determine their effects on outcomes.

Shoe Size

A numerical indication of the fitting size of a shoe for a person.

IQ

An abbreviation for Intelligence Quotient, a theoretical measure of an individual's intelligence level determined through specific standardized tests.

Uncorrelated

Describes two or more variables that do not have any statistical relationship, meaning changes in one do not predict changes in the other.