The Two Main Monetary Policy Tools Used by the Bank

question 130

Multiple Choice

The two main monetary policy tools used by the Bank of Canada to implement monetary policy are

• A)open market operations and tax rates.
• B)tax rates and lending to financial institutions.
• C)open market operations and lending to financial institutions.
• D)tax rates and printing money.
• E)lending to financial institutions and changing the desired reserve ratio.

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Definitions:

Unfreezing Process

The initial phase in change management where existing patterns are destabilized to prepare for transformation.

Fear

An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.

Major Obstacles

Significant barriers or challenges that hinder progress or achievement.

Emotional Standstill

A state where an individual feels emotionally stuck or incapable of progressing.