What Activity Does the Bank of Canada Undertake When It

question 13

Multiple Choice

What activity does the Bank of Canada undertake when it carries out open-market operations?  

• A) It buys and sells the bonds, but NOT the notes, of leading Canadian corporations. 
• B) It changes the overnight loans rate, which generally increases the amount of available credit. 
• C) It provides funds so that healthy depository institutions can purchase weaker ones on the open market. 
• D) It deals in the purchase and sale of government securities.

---

Definitions:

Scientifically Verified

Refers to concepts, hypotheses, or theories that have been confirmed through the scientific method via experimentation, observation, and analysis.

Explanations Tested

The process of assessing the validity or effectiveness of reasons or justifications through empirical evidence or experimentation.

Behavioral Sciences

The study of human and animal behavior through observation and scientific analysis, including fields like psychology, anthropology, and cognitive science.

Organizational Behavior

The study of how individuals and groups interact within an organization and how this affects the organization’s performance and culture.