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Explain the attractive store of value

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(a) Why are people willing to hold money even if it is not the most attractive store of value compared to other types of assets?

(b) Which of the Bank of Canada's measures of the monetary aggregates - M1+ or M2+ - is composed of the most liquid assets?

(c) If an individual moves money from a chequing account to a money market mutual fund, how does this affect the M1+ money supply and M2+ money supply?

(d) If an individual moves money from a chequing account to a money market mutual fund, how does this affect the M2+ money supply and M2 money supply?

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Reference no: EM133129912

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