When the Bank of Canada Makes an Open-Market Sale, It

question 65

Multiple Choice

When the Bank of Canada makes an open-market sale, it:

• A)increases the money multiplier (m).
• B)increases the currency-deposit ratio (cr).
• C)increases the monetary base (B).
• D)decreases the monetary base (B).

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Definitions:

Explicit Costs

Payments made directly to individuals or entities for wages, rent, and materials as part of business operations.

Items

Individual objects, products, or units that are part of a list, collection, or inventory available for sale or distribution.

Accounting Cost

The recorded expenses associated with the operation of a business, including both fixed and variable costs.

Hourly Wage

A rate of pay given to employees based on the number of hours worked.