To Offset the Effect of Households and Firms Deciding to Hold

question 256

Multiple Choice

To offset the effect of households and firms deciding to hold less of their money in chequing account deposits and more in currency, the Bank of Canada could

• A)decrease its lending to financial institutions.
• B)purchase government securities.
• C)raise the bank rate.
• D)sell government securities.
• E)increase the desired reserve ratio.

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Definitions:

Federal Troops

Military forces deployed by the federal government of a nation, often used for maintaining security, defense, and order, including during times of civil unrest.

Break Down Strikes

The act of forcibly ending or undermining strikes, often through legal, political, or physical means, typically by employers or government authorities.

American President

The head of state and government of the United States of America, elected to a four-year term and responsible for the execution of federal laws and the administration of national policies.

Rutherford B Hayes

was the 19th president of the United States, serving from 1877 to 1881, known for ending the Reconstruction era.