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• A)it cannot control the amount of cash reserves that are injected into or withdrawn from the banking system.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.

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Definitions:

Negative Reinforcement

A type of operant conditioning that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Dull His Feelings

"Dull His Feelings" suggests an attempt to numb or suppress one's emotional responses, often through the use of substances or other coping mechanisms.

Schedule of Reinforcement

A rule or plan for determining the timing and frequency of reinforcement (rewards or punishments) in order to modify behavior.

Fixed Interval

A reinforcement schedule that rewards a response only after a specified time has elapsed, leading to a pattern of response following the reinforcement.