In Practice, It Is Not Possible for the Bank of Canada

question 104

Multiple Choice

In practice, it is not possible for the Bank of Canada to control the money supply because

• A)it cannot control the amount of cash reserves that are injected into or withdrawn from the banking system.
• B)the resulting effects on the value of the Canadian dollar are difficult to predict.
• C)it does not have the legal power to do so.
• D)it cannot control the process of deposit creation carried out by the commercial banks.
• E)none of the above-the Bank of Canada could control the money supply if it chose to do so.

---

Definitions:

Shock Subjects

Individuals subjected to electric shocks in experimental settings, often used to study responses to stress or authority.

Initial Compliance

The initial willingness to go along with a request or follow a rule or guideline, often before any form of resistance or refusal is considered.

Personal Responsibility

The concept of acknowledging and accepting the choices one makes and the consequences that follow.

Authority Figure

An individual who holds power or influence in a societal structure, often seen as a source of guidance or enforcement of rules and standards.