Explain How Each of the Following Actions Changes the Money

question 191

Essay

Explain how each of the following actions changes the money supply.
a. The Bank of Canada buys bonds.
b. The Bank of Canada raises the bank rate.
c. The Bank of Canada raises the reserve requirement.

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Definitions:

Pilot Control Device

A manual or automatic apparatus used to start, stop, or regulate the operation of machines via control circuits.

Loss of Power

The condition where electrical power supply to a device, system, or area is interrupted or cut off.

Hand-off-automatic Circuit

A control circuit allowing equipment operation in hand (manual control), off, or automatic modes, depending on the selected setting.

Operator

An operator is a person or device responsible for managing, controlling, or executing the operation of machines, systems, or processes.