What Is the Primary Way the Bank of Canada Controls

question 117

Multiple Choice

What is the primary way the Bank of Canada controls the supply of money?

• A) by buying and selling government securities on the open market
• B) by establishing the amount of currency the Bank of Canada is allowed to print each month
• C) by allowing banks to borrow more money from the Bank of Canada
• D) by changing the reserve requirement

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Definitions:

Harry Braverman

An American Marxist sociologist and writer known for his work on labor and the degradation of work in the twentieth century.

Capitalists

Individuals or entities that own capital, invest in businesses, and seek to generate profit from their investments.

Profits

The financial gains obtained when the revenues generated from a business activity exceed the expenses, costs, and taxes involved in sustaining the activity.

Control

The power to influence or direct people's behavior or the course of events.