In Formulating Its Monetary Policy, the Bank of Canada Focuses

question 11

Multiple Choice

In formulating its monetary policy, the Bank of Canada focuses primarily on?

• A) M2
• B) M1⁺⁺ and M2⁺⁺
• C) M1
• D) M1 and M2
• E) high-powered money

---

Definitions:

Deuterium Atoms

Heavy hydrogen atoms that contain one proton and one neutron in the nucleus, often used as a tracer or in nuclear reactors.

Catalytic Base

A substance that increases the rate of a chemical reaction by providing an alternative reaction pathway with lower activation energy, and which participates in the reaction as a base (accepting protons).

2-methylcyclohexanone

An organic compound consisting of a six-membered ring with a ketone functional group and a methyl group attached.

Enolate

An ion formed by the deprotonation of an alpha carbon of a carbonyl compound, involved in many important organic reactions.