Finance and banking
Chapter 1
1. Has the inflation rate in Canada increased or decreased in the past few years? What about interest rates?
R/. The inflation rate of CAnada is low. The inflation rate was at 1.10 % in August. And the interest rate was declining. In one news said that on 1915 until 2013, the Canada 's inflation rate 3.2% reaching an all time high of 21.6% in June of 1920 and got a record low at -17.8% in June of 1921.
2. If history repeats itself and we see a decline in the rate of money growth, what might you expect to happen to
A. Real output - is going down
B. the inflation rate, and - is going down
C. Interest rates - is going down All are going to fall.
3. When was the most recent recession?
According to the National Bureau of Economic Research (the official arbiter of U.S. recessions), there were 10 recessions between 1948 and 2011. And the recent recession started in December 2007 and finished in June 2009.
4. When interest rates fall, how might you change your economic behaviour?
I will buy a car and house because the cost of them would fall. I think when the rates fall is good spend more money for get good properties and the future I can duplicate what I spend.
5. Can you think of any financial innovation in the past ten years that has affect you personally? Has it made you better off or worse off? Why?
I think all the inventions that the government made, for example the subway and trains. This made me better off, because for me I feel more comfortable with the transportation and for all the population, this made more opportunities for get a job.
6. Is everybody worse off when interest rates rise?
When net rest rates rise is not worse off, but for the people who borrow for get a house or a car would be worse off for them, because will cost more to finance their purchase.
7. What is the basic activity of banks? Store money
Storing money for customers is the most classic of banking activities. Traditional banks,
1. Has the inflation rate in Canada increased or decreased in the past few years? What about interest rates?
R/. The inflation rate of CAnada is low. The inflation rate was at 1.10 % in August. And the interest rate was declining. In one news said that on 1915 until 2013, the Canada 's inflation rate 3.2% reaching an all time high of 21.6% in June of 1920 and got a record low at -17.8% in June of 1921.
2. If history repeats itself and we see a decline in the rate of money growth, what might you expect to happen to
A. Real output - is going down
B. the inflation rate, and - is going down
C. Interest rates - is going down All are going to fall.
3. When was the most recent recession?
According to the National Bureau of Economic Research (the official arbiter of U.S. recessions), there were 10 recessions between 1948 and 2011. And the recent recession started in December 2007 and finished in June 2009.
4. When interest rates fall, how might you change your economic behaviour?
I will buy a car and house because the cost of them would fall. I think when the rates fall is good spend more money for get good properties and the future I can duplicate what I spend.
5. Can you think of any financial innovation in the past ten years that has affect you personally? Has it made you better off or worse off? Why?
I think all the inventions that the government made, for example the subway and trains. This made me better off, because for me I feel more comfortable with the transportation and for all the population, this made more opportunities for get a job.
6. Is everybody worse off when interest rates rise?
When net rest rates rise is not worse off, but for the people who borrow for get a house or a car would be worse off for them, because will cost more to finance their purchase.
7. What is the basic activity of banks? Store money
Storing money for customers is the most classic of banking activities. Traditional banks,