In Practice, the Bank of Canada Implements Its Monetary Policy

question 46

Multiple Choice

In practice, the Bank of Canada implements its monetary policy by

• A)setting the money supply.
• B)influencing the slope of the money demand curve.
• C)directly influencing the overnight interest rate.
• D)directly influencing the excess reserves in the commercial banking system.
• E)directly influencing the price level.

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Definitions:

Yasir Arafat

A Palestinian political leader and the chairman of the Palestine Liberation Organization (PLO) from 1969 until his death in 2004, who played a central role in the Palestinian liberation movement.

Palestine Liberation Organization

A political and militant organization founded in 1964, claiming to represent the world's Palestinian people in their struggle for an independent state.

Terrorism

The use of violence and intimidation, especially against civilians, in the pursuit of political aims.

Fastest-Growing Ethnic Minority

Refers to the ethnic or racial group within a given nation or area that is increasing in population at a rate higher than other groups over a specific period.