When the Bank of Canada Makes an Open Market ________,The

question 42

Multiple Choice

When the Bank of Canada makes an open market ________,the target short-term nominal interest rate will increase,which will ________ GDP.

• A) purchase; increase
• B) purchase; decrease
• C) sale; increase
• D) sale; decrease

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Definitions:

Return on Investment

A financial ratio that calculates the percentage gain or loss on an investment relative to the cost of the investment, indicating the efficiency of the investment.

Investment Turnover

The ratio of sales to invested assets.

Profit Margin

A financial metric, calculated as net income divided by revenue, that indicates the percentage of sales that exceeds the costs of goods sold.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.