When the Bank of Canada Wants to See an Increase

question 68

Multiple Choice

When the Bank of Canada wants to see an increase in the interest rates, it:

• A)sells government securities by entering into SRA (a sale and repurchase agreement).
• B)buys government securities by entering into SRA (a sale and repurchase agreement).
• C)sells government securities by entering into SPRA (special purchase and resale agreement).
• D)buys government securities by entering into SPRA (special purchase and resale agreement).

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Definitions:

Public Companies

Corporations whose shares are publicly traded on stock exchanges, allowing for public ownership.

Acquisition

The process of gaining control or ownership of another company or asset through purchase or merger.

Merger

The combination of two or more companies into a single entity, often with the goal of increasing market share or efficiency.

Takeover

The acquisition of one company by another in which the acquiring company essentially "takes over" control of the target company.