5 good questions and answers: "Money, Banking and the central Banking system"

What are the 3 main roles of money in a modern economy, or the three requirements to be called money?
  • Medium of exchange
  • a store of value
  • a unit of account 
What do we call it when money is the commonly accepted measure individuals use to set prices and make economics calculations
It is called the unit of account
What money aggregate or M1 is a major component of money supply?
Bank deposits
What are the three main tools that takes  care of the stability of Canada's financial systems
  • Depositor insurance,
  • capital requirements,
  • reserve requirements
Who decides how large the monetary base will be? What is that?
The central bank
an institution that oversees and regulates the banking system and controls the monetary base
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