ECON 1000 Chapter Notes - Chapter 10: Excess Reserves, Foreign Exchange Market, Money Creation
26 Apr 2018
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The meaning of money: money: the set of assets in an economy that people regularly use to buy goods and services from others. In other words, when goods and services become more expensive, each dollar in your wallet can buy less. The bank of canada: whenever an economy relies on a system of fiat money, as the canadian economy does, some organization must be responsible for controlling the stock of money. In canada, that organization is the bank of canada: bank of canada: the central bank of canada, central bank: an institution designed to regulate the quantity of money in the economy. The bank of canada act: the bank was established in 1935 and nationalized in 1938, so it is now owned by the. Monetary policy: the bank of canada has the power to increase or decrease the number of dollars in the economy, the ba(cid:374)k of ca(cid:374)ada"s (cid:373)ethods of (cid:272)o(cid:374)t(cid:396)olli(cid:374)g the (cid:373)o(cid:374)e(cid:455) suppl(cid:455) a(cid:396)e (cid:272)o(cid:373)ple(cid:454) a(cid:374)d su(cid:271)tle.
