Which of the Following Does Not Affect the Size of the Monetary

question 108

Multiple Choice

Which of the following does not affect the size of the monetary base?

• A)the amount of notes issued by the Bank of Canada
• B)the amount of loans issued by chartered banks
• C)the amount of coins issued by the Canadian Mint
• D)the amount of chartered bank deposits at the Bank of Canada
• E)none of the above

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Definitions:

Trading Possibilities Curves

A graphical representation that shows the maximum amounts of goods that two countries can trade with each other, given their resources and technology.

Comparative Advantage

The skill of an entity—be it an individual, enterprise, or nation—to manufacture a product or deliver a service at a reduced opportunity cost than that of its competitors.

Production Possibilities

The various combinations of goods and services that an economy can produce, given its technological capabilities and available resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade benefits.