stabilizing the economy role of central bank jenny xu department economics sfu figure 13 1 two theories interest rate determination i vertical money supply theory how demand and for enable canada to set rates wealth forms cash chequing accounts is relatively liquid also a type financial asset other assets bonds stocks etc one many ways holding can be held in form government rare stamps land portfolio allocation decision about which hold s amount an individual chooses businesses must decide much why till needed make change payroll more than twice as individuals cost benefit criterion tells us that or firm will increase holdings if doing so exceeds benefits costs
