COMMERCE 1E03 Chapter 18: Chapter 18 - 1E03 Slides
3 May 2017
School
Department
Course
Professor
Document Summary
Article posted on avenue will be on exam! 5 standards for a useful form of money: Money is anything that people generally accept as payment for goods and services. Bartering is not practical because it is difficult to carry around goods and services. Divisible: coins and bills can represent different values. Promotes the economic and financial welfare of canada by conducting monetary policy in a way that fosters confidence in the value of money. Promotes safety and efficiency of canada"s financial system. Actions include regulating short-term interest rates; setting target overnight interest rates (which impacts prime rate); and trying to keep inflation within 1 3% The money supply is the amount of money the bank of canada makes available for people to buy goods and services. Bank of canada manages the rate of money growth indirectly through its influence over short-term interest rates.
