The Money Supply in Canada Is Measured Using M1,M2,M2+,and M3

question 55

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

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Definitions:

High Tariffs

Government-imposed taxes on imported or exported goods intended to protect domestic industries, but can lead to international trade disputes.

Freedom From Want

A concept popularized by President Franklin D. Roosevelt as one of the Four Freedoms, referring to the right to an adequate standard of living and economic security.

Consumerism

The theory or policy that promotes an increasing consumption of goods as an economic policy or social system.

Standard Of Living

Refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.