The Amount of Currency in Circulation in the Canadian Economy

question 91

Multiple Choice

The amount of currency in circulation in the Canadian economy is described as being endogenous to the system.This is because

• A)the process of deposit creation by the commercial banks is determined by the Bank of Canada.
• B)the commercial banks determine the currency in circulation in response to the Bank of Canada's changes to the money supply.
• C)the Bank of Canada conducts its open-market operations in response to the changing demand for cash from the commercial banks.
• D)the Bank of Canada targets the money supply directly.
• E)the Bank of Canada targets the currency in circulation directly.

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