Across 2 The _____demand for money varies directly with nominal GDP. (12) 4 A situation in which an individual or firm takes advantage of special knowledge while engaging in socially uneconomic behaviour. (5,6) 8 The major Canadian banks are commonly called the ______ banks. (9) 12 Another term for chequing deposits is ______ deposits. (6) 14 An imperfect information problem that can occur when one party enters in an exchange with another party who has more information. (7,9) 17 Trading goods for other goods is called ______. (6) 18 When the Bank of Canada manipulates the money supply and interest rates, this is called ______policy. (8) 22 Total currency in circulation and demand deposits in the chartered banks make up ______. (2) 24 A money system based on trust and not gold is called a ______system. (9) 25 Total currency in circulation plus chartered bank demand and notice deposits make up ______. (2) 26 The notion that currency must be accepted as payment of the last resort is called ______. (5,6) 28 "______ money" is a phrase frequently used to describe expansionary monetary policy. (4) 30 A _____ is a financial institution structured as a cooperative. (6,5) 31 Another term for savings deposits is ______ deposits. (6) 32 The number of times per year a dollar is spent on final goods and services is called the ______ of money. (8) 33 One way the Canadian government "backs" chequable deposits is through ______. (7,9) 34 Holding money to meet unplanned expenditures or emergencies is called the ______ demand for money. (13)

Down 1 Since money encourages trade, it promotes ______ of labour. (14) 3 In order to prevent rapid inflation, the supply of money must be kept relatively ______. (6) 5 The _____demand for money varies inversely with the level of interest rates. (5) 6 Deposits held by the chartered banks in the Bank of Canada plus vault cash held in chartered banks equal ______. (8) 7 ______money is money because the government decrees it is. (4) 9 The purchase and sale of existing Canadian government bonds in the open private market by the Bank of Canada is called ______operations. (4,6) 10 In a modern banking system, if all customers attempted to convert all their deposits into currency at the same time, this would cause a ______. (4,3) 11 One of the problems with a barter system is the _____ of wants that must take place to secure a trade. (6,11) 13 When the Bank of Canada moves Government of Canada deposits from the chartered banks to an account in the Bank of Canada, this is called a ______. (8) 15 Using money as a convenient way to store future purchasing power is an example of money's function as a ______. (5,2,5) 16 A financial system in which banks hold an amount of reserves that is less than the amount of total deposits is called a ______system. (10,7) 19 The maximum amount of new money that a single bank can create equals its ______. (6,8) 20 The process by which an injection of new money into the banking system leads to a multiple expansion in the total money supply is called the ______process. (5,10) 21 A ______, managed by financial experts, sells units to people in order to invest in a diversified set of financial assets. (6,4) 22 An informal request by the Governor of the Bank of Canada to the CEOs of the chartered banks to voluntarily restrict or expand credit or other loans is an example of ______. (5,7) 23 Economists who believe that inflation is always caused by excessive monetary growth are referred to as ______. (11) 27 "______ money" is a phrase frequently used to describe contractionary monetary policy. (5) 29 ______ assets are assets that can be sold quickly without incurring a capital loss. (6)