Which Policy Tool Allows the Bank of Canada the Greatest

question 209

Multiple Choice

Which policy tool allows the Bank of Canada the greatest control over monetary policy?

• A)the overnight interest rate
• B)open market operations
• C)the reserve requirement
• D)lender of last resort
• E)its control over commercial banks' reserve ratio

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Definitions:

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce a variety of hormones, including adrenaline and cortisol, which regulate metabolism, immune response, and stress responses.

Gonads

The primary reproductive organs in animals, specifically the testes in males and ovaries in females, responsible for producing gametes and sex hormones.

Pituitary Gland

A small endocrine gland located in the base of the skull, called the "master gland," responsible for controlling and regulating numerous other endocrine glands and body functions.

Thyroid Gland

A gland in the neck that produces hormones regulating growth and development through the rate of metabolism.