Question

The quantity of savings that people are willing to supply will depend on:

	the magnitude of the money multiplier.
	the rate of interest that they receive.
	the demand for loanable funds.
	the money supply as determined by the Bank of Canada.

The idea behind purchasing power parity is:  

	that after having exchanged Canadian $ into US $ or vice versa, the price of tradeable goods should be the same in the USA and Canada.
	that cost-of-living adjustments that are indexed to consumer price inflation prevent pensioneers from losing out.
	that the rate of consumer price inflation in Canada has to be the same as it is in the USA.
	that the purchasing power of a typical Canadian household and a typical US household are the same.

If a central bank were to change the reserve requirement in an effort to increase the money supply, they would:

	sell bonds
	decrease the reserve ratio
	increase the reserve ratio
	decrease the overnight rate.

We say that money functions as a medium of exchange because it represents:

	purchasing power that will be preserved for the future.
	something that you can directly offer, like a certain good or service, in exchange for some other good or service you want.
	something that you can use to purchase some good or service you want.
	a standard unit of comparison

Answer 1

Quantity of savings that people are willing to supply will depend on interest rate because it is the opportunity cost of holding money. If it is increased, people will save more, deposit in banks, and supply more loanable funds. Select the rate of interest that they receive.

The idea behind purchasing power parity is to have a law of one price where the same good at two different location costs the same when adjusted for exchange rate, given that there are no transaction costs. Select that after having exchanged Canadian $ into US $ or vice versa, the price of tradeable goods should be the same in the USA and Canada

If a central bank were to change the reserve requirement in an effort to increase the money supply, they would reduce it because it will release reserves that could be used as loans and generating money supply in economy. Select decrease the reserve ratio

We say that money functions as a medium of exchange because it represents something that you can directly offer, like a certain good or service, in exchange for some other good or service you want