INTRO - MACROECONOMICS - Money & Banking - & The Money Market and Monetary Policy

Answer the questions below from the data in the table (all figures are in billions of dollars).

Total currency issued by the Bank of Canada $17
Total personal savings deposits 186
Total demand deposits 19
Deposits of government at the Bank of Canada 3
Currency held by commercial banks 3
Government bonds owned by the public 96
Nonpersonal term deposits (certificates of deposit) 41

a. Total currency in circulation is $ _____ billion.

b. How much larger is M1 than the total currency in circulation?

M1 is larger than the total currency by $ _____ billion.

c. How much larger is M2 than M1?

M2 is larger than M1 by $ _____ billion.

Please provide an explanation as you solve this question.

d. How much larger is M3 than M2?

M3 is larger than M2 by $ _____billion.

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Joshua Stredder
Joshua StredderLv10
28 Sep 2019

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