The Policy Tools Used by the Bank of Canada Include

question 54

Multiple Choice

The policy tools used by the Bank of Canada include

• A)prime rate and bank rate.
• B)the operating band and open market operations.
• C)open market operations and prime rate.
• D)prime rate and the exchange rate.
• E)the exchange rate and open market operations.

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Definitions:

Credit Sales

Sales made on credit, allowing the buyer to pay the seller at a later date.

Sales Discounts

Reductions in the selling price offered to customers, often as an incentive for early payment or bulk purchases.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.

Accounts Receivable

Represents the money that a company is entitled to receive because it has provided customers with goods and/or services.