When Attempting to Decrease the Overnight Rate,the Bank of Canada

question 58

Multiple Choice

When attempting to decrease the overnight rate,the Bank of Canada can

• A) increase reserve requirements.
• B) engage in an open market purchase.
• C) increase the discount rate.
• D) raise the interest rate paid on bank reserves.

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Definitions:

Seismic Records

data captured by seismographs, which document the waves generated by earthquakes, explosions, or other ground-shaking phenomena.

Surface Waves

Seismic waves that travel along the earth's surface, causing the ground to shake in an elliptical motion, often responsible for the damage during earthquakes.

Ground Shaking

Vibrations of the earth's surface typically caused by seismic waves generated during earthquakes.

Tsunami

A large sea wave caused by underwater earthquakes or landslides.