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:

Embryonic Period

A critical phase in prenatal development that spans from fertilization to the end of the eighth week, during which major organs and structures begin to form.

Prenatal Development

The process of growth and development within the womb from conception to birth, involving significant changes and stages.

Intestinal Tract

The part of the digestive system that extends from the stomach to the anus, responsible for nutrient absorption and waste elimination.

Object Permanence

Piaget’s term for the crucial accomplishment of understanding that objects and events continue to exist even when they cannot directly be seen, heard, or touched.