Which of the Following Correctly Describes a Monetary Target the Bank

question 124

Multiple Choice

Which of the following correctly describes a monetary target the Bank of Canada has focused on?

• A)The Bank of Canada has used M1+ and M1++ as targets since 1993.
• B)The Bank of Canada has focused on M1+ as a target after deregulation of the financial markets.
• C)The Bank of Canada uses the overnight interest rate to target the interest rate.
• D)After 1980 and before the 1990s, the Bank of Canada focused on interest rate targets.
• E)The Bank of Canada has focused on the growth of M2, rather than the level of M2.

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Definitions:

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