Money, Banking and the central Banking system - the meaning of money - measuring the money supply

7 important questions on Money, Banking and the central Banking system - the meaning of money - measuring the money supply

What do we call the overall measures of the money supply?

We call them money aggregates

What do money aggregates include?

different types of deposits
financial institutions

What does a money aggregate without a plus sign include.

Depositis held at chartered banks
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What do we consider small financial institutions?

  • Trust companies
  • mortgage loans companies
  • credit unions and caisses popularies 

What is included in M1 the narrowest definaition of money aggragates? Why is it called the most the most liquid.

Currency in circulation (cash) + Demand deposits + continuity adjustment
because we use it for daily transactions

What is included in demand deposits

banks opening accounts,
trust companies opening accounts,
mortgage and loan companies giving you money,
credit unions and caisses populaires  giving you money

What do we call a deposit that can be drawn at any time before its maturity date by paying a penalty

Term deposit

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