The Bank of Canada Conducts Its Open-Market Operations Directly in Response

question 105

Multiple Choice

The Bank of Canada conducts its open-market operations directly in response to

• A)changes in aggregate demand.
• B)orders from Parliament.
• C)its announced changes in the money supply.
• D)changes in the price level.
• E)the changing demand for cash reserves from the commercial banks.

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Definitions:

Explanandum

The aspect of a phenomenon that is being explained, or the question that an explanation seeks to answer.

Complex

Consisting of many different and connected parts.

Simple

Easily understood or done; presenting no difficulty, or in logic, referring to an uncompounded statement or idea.

Implausible

Something that appears unlikely or difficult to believe based on available evidence or common sense.