The Most Important Day-To-Day Monetary Instrument That the Bank of Canada

question 60

Multiple Choice

The most important day-to-day monetary instrument that the Bank of Canada uses to achieve the desired interest rate and therefore the price stability is:

• A)open-market operations.
• B)the bank rate.
• C)the government expenditure.
• D)the prime interest rate.

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Definitions:

Crisis

A critical or tumultuous situation that requires immediate attention and action to manage and mitigate its effects.

Ego Defense

Psychological strategies deployed by the individual to manage stress, conflict, and inner turmoil, preserving self-esteem.

Identity States

Psychological conditions representing different understandings and degrees of personal identity development.

Moratorium

Identity status, described by Marcia, in which a person is currently considering alternatives (in crisis) and seems headed for commitment.