To Raise Short- Term Market Interest Rates, the Bank of Canada

question 30

Multiple Choice

To raise short- term market interest rates, the Bank of Canada could

• A)purchase government securities in the open market.
• B)adjust the rate paid on Treasury bills.
• C)increase its target for the overnight rate.
• D)lower the reserve requirement.
• E)increase the commercial banks' required reserves.

---

Definitions:

Petition of Right

A constitutional document submitted to Charles I by the English Parliament in 1628 to limit the king's authority and assert the rights of subjects, including freedom from arbitrary arrest and taxation without Parliament's consent.

English Constitution

An uncodified set of fundamental principles and established precedents according to which the state of England is governed.

Navigation Acts

A series of English (later British) laws that regulated trade and commerce between England (later Great Britain) and its colonies to enrich the mother country.