If the Bank of Canada Aims to Lower the Overnight

question 10

Multiple Choice

If the Bank of Canada aims to lower the overnight rate, it will

• A)lower the bank rate and settlement balances rate, as well as buy government securities.
• B)lower the bank rate and increase the settlement balances rate, as well as buy government securities.
• C)lower the bank rate and settlement balances rate, as well as sell government securities.
• D)raise the bank rate and settlement balances rate, as well as buy government securities.
• E)raise the bank rate and settlement balances rate, as well as sell government securities.