Notes in Circulation Are

question 45

Multiple Choice

Notes in circulation are:

• A)an asset as viewed by the Bank of Canada.
• B)a liability as viewed by the Bank of Canada.
• C)neither an asset nor a liability as viewed by the Bank of Canada.
• D)part of M1, but not of M2 or M2+.

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Definitions:

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Compounded Monthly

Refers to the process of adding interest to the principal sum of a loan or deposit on a monthly basis, where the added interest also earns interest from then on.

Savings Plans

Financial programs that allow individuals to set aside money for future use, often with tax advantages or interest benefits.

Accumulated Funds

Total funds or capital that has been gathered or saved up over a period, often referring to the sum of earnings, savings, or investments.