In Practice,the Bank of Canada Uses Monetary Policy to Reduce

question 35

Multiple Choice

In practice,the Bank of Canada uses monetary policy to reduce undesirable fluctuations in real GDP by

• A)controlling business investment expenditures directly.
• B)controlling government spending.
• C)influencing market interest rates through changes in its target for the overnight interest rate.
• D)directly influencing the money supply which affects the interest rate and hence,consumption and investment.
• E)targeting the money supply directly.

---

Definitions:

Unauthorized Signer

An individual who signs a document or agreement without the legal authority or permission to do so.

Ratified

Confirms or approves an action, document, or agreement officially, making it valid and enforceable.

Secondary Indorsers' Liability

Refers to the legal responsibility that falls on endorsers who sign a document or contract after the primary signer, particularly in financial transactions.

Negotiates

The process of discussing something formally to reach an agreement or compromise.