The Policy Tools Used by the Bank of Canada Include

question 54

Multiple Choice

The policy tools used by the Bank of Canada include

• A)prime rate and bank rate.
• B)the operating band and open market operations.
• C)open market operations and prime rate.
• D)prime rate and the exchange rate.
• E)the exchange rate and open market operations.

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Definitions:

Caveat Emptor

The legal concept of “let the buyer beware” that was pervasive in the American business culture prior to the 1960s.

Multinational Firm

A company that conducts business and has facilities and other assets in at least one country other than its home country.

Transnational Firm

A company that operates across national borders, managing production or service facilities in more than one country.

International Firm

A business that engages in commercial transactions across national borders.