Question

1. What kinds of items have served as money in the past? Provide three examples.

For each example, explain why the use of that item did not continue?

2. Discuss the characteristics of money and provide an example NOT indicated in the text for each of the four characteristics.

3. Why are chequing accounts also called demand deposits?

4. Why are savings accounts also called time (or notice) deposits?

5. Are credit cards money? Why or why not?

6. What is the bank rate at the Bank of Canada as of today? Do you consider that low or high? Why?

7. What are the five primary functions of the Bank of Canada?

8. Who is the Governor of the Bank of Canada?

9. What is the name of the policy conducted by the BoC to stabilize the economy?                             
10. List the 2019 revenues of the top five banks in Canada.

11. All students are to review the MLA tutorial posted on BB. You are to report back THREE things that you learned that you did not know before this exercise. Take screenshots of the three areas you learned and attach to your word document

Answer 1

Question: What kind of items have served as money in the past? Provide 3 examples. For each Example explain why the use of that item did not continue?

Ans- 1 There are several items that are served as money in the past. Some of them are mentioned below:-

a) Commodity money- In the earliest period of human civilization, any commodity that was generally demanded and chosen by common consent, was used as money. For example skins, salt, rice, wheat utensils etc. They were discontinued because it is difficult to find a person who's need matches with our(double coincidence of wants).

b) Gold- With progress of human civilization, commodity money change into metallic money. Metals like gold. Gold was discontinued because it was difficult to carry gold.

C) silver- Silver coins were very famous in the past. They were also discontinued because they cannot be carried and also large transactions cannot be done with them.

Question: discuss the characteristics of money and provide an example not indicated in the text for each of the four characteristics.

Ans-2The characteristics of money are mentioned below:-

DURABILITY
Durability of money is such that it can be used over and over again; hence it must survive wear and tear for long periods. For example- money can be kept for a long time in a safe or locker.

PORTABILITY
Portability is that money must be able to go wherever such that it is easy to transport as people travel. For example- In any corner of the country money is widely available.

DIVISIBILITY
This aspects deals with the fact that money must be easily divided to enable a person to buy different products.

UNIFORMITY
Uniformity of money calls for a standardization of money so that it looks the same. For example- It is easier to count money because of uniformity.

Question: why are cheqing accounts also called demand deposits?

Answer: Chequing accounts are called demand deposits because the money deposited needed to be available on demand. The payment can be paid through cheque on the demand instantly.

Question why are savings accounts also called time or notice deposits?

Answer: saving Deposits has features of time deposits. the depositors are given cheque facility to withdraw money from their account but some restrictions are imposed on number and amount of withdrawals in order to discourage frequent use of saving deposits. In case of time deposits also there are restrictions on withdrawal. Like time deposits saving deposits also carry a rate of interest but this is less than interest rate on fixed deposit.

Question: Are credit cards money? Why or why not?

Answer: credit cards cannot be considered as money as these are a kind of loan which is given by bank to its customers. Also these cards carry rate of interest to be charged on the used amount. For the repayment of loan the borrower has to pay money to the bank.

Question: what is the bank rate of at the bank of Canada as of today? Do you consider that low or high why?

Answer: The Bank of Canada today maintained its target for the overnight rate at 0.25 per cent, which the Bank considers its effective lower bound. The Bank Rate is correspondingly 0.5 per cent and the deposit rate is 0.25 per cent.

Question: what are the primary functions of Bank of Canada?

A. Bank of note issue: Since 1967 the Bank of Canada with the revision of the Bank Act was provided with unlimited powers to issue legal tender. The Bank also tries to preserve the integrityand safety of Canadian currency.

b. Government debt and asset management services: The Bank of Canada in its role as the government's fiscal agent provides debt-management services for the federal government such asadvising on borrowings, managing new debt offerings and servicing outstanding debt.

c. Central banking services: The bank of Canada serves as the lender of last resort for the deposit-taking financial institutions. It also plays a central role in Canada's national payments system. Finally the Bank acts as the holder of deposit accounts for the government.

d. Monetary policy: The Bank of Canada employs tools such as open market operations to conduct monetary policy. The Bank's ultimate objective is to keep inflation low so that steady economic growth is achieved.

Question: who is the governor of Bank of Canada?

Answer: The Governor of the Bank of Canada is the chief executive officer of the Bank of Canada and acts as chair of its board of directors.
Governer and CEO of bank of canada- Tiff Macklem.

Question: what is the name of the policy conducted by bank of Canada to stabilize the economy?

Answer: monetary policy is the policy of Bank of Canada which is used for stabilization of economy. The bank of Canada uses policy to correct the situation of excess and deficient demand.

Question: list the 2019 revenues of the top 5 banks in Canada.

Answer: 2019 revenue of top 5 banks of Canada
1. Royal Bank of Canada (RBC)
Revenue
Increase CA$46 billion (2019)
2. Toronto dominion bank
Revenue
Increase $41.065 billion CAD (FY 2019)
3 Bank of Nova Scotia Canada
revenue for 2019 was $35.093 billion.
4. Bank of Montreal
annual revenue for 2019 was $29.153B,
5. Canadian imperial Bank of Commerce
Revenue
Increase C$18.6 billion (2019)