Two Monetary Policy Instruments That the Bank of Canada Can

question 4

Multiple Choice

Two monetary policy instruments that the Bank of Canada can use are

• A)the federal government budget balance and the real interest rate.
• B)the quantity of Canadian dollars held in Canadian banks and the quantity fo Canadian dollars held by foreign central banks.
• C)the monetary base and the short-term interest rate.
• D)the foreign exchange rate and the government budget balance.
• E)the current account balance and the capital and financial account balance.