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:

Secondary Boycott

A form of protest in which a union encourages both its members and the general public not to buy the products of a company that is involved in a dispute.

Lockout

A tactic used by employers where they prevent employees from working during a labor dispute, often to pressure the union to accept contract terms.

RICO Act

The Racketeer Influenced and Corrupt Organizations Act, a United States federal law designed to combat organized crime by allowing prosecution and civil penalties for racketeering activity.

Sympathy Strike

A labor strike by one union in support of another union's strike, even though the first union does not have a direct dispute with the employer.