Which of the Following Actions by the Bank of Canada

question 74

Multiple Choice

Which of the following actions by the Bank of Canada will decrease the money supply?

• A) buying government securities through open market operations
• B) increasing the prime rate
• C) decreasing the overnight rate
• D) increasing the overnight rate

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Definitions:

Payroll Period

The time frame for which employee earnings are calculated and paid, such as weekly, bi-weekly, monthly.

Unemployment Tax Rate

A tax rate assigned to an employer, based on the number of unemployment claims filed by former employees, which funds unemployment compensation programs.

Federal Income Tax

A tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Gross Payroll

The total amount an employer pays to its employees before deductions, such as taxes and retirement contributions, are made.