Refer to the Information Below

question 36

Multiple Choice

Refer to the information below.The M1 definition of money comprises item(s) : 1.Foreign currency deposits of residents booked in Canada
2) Personal savings deposits
3) Currency (coins and paper money)
4) Demand deposits
5) Government securities
6) Nonpersonal notice deposits

• A)3 only.
• B)2, 3, and 6.
• C)3 and 4.
• D)3, 4, and 6.

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Definitions:

Positive Externalities

Benefits experienced by third parties who are not directly involved in the production or consumption of a good or service.

Moral Hazard Problem

A situation where one party engages in risky behavior knowing that it is protected against the consequences by another party.

Government's Role

Refers to the duties and functions that a government carries out to ensure the stability and growth of its nation, including legislation, public service provision, and economic management.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, as opposed to the state.