Since 1994, What Was Phased Out as a Tool Used

question 56

Multiple Choice

Since 1994, what was phased out as a tool used by the Bank of Canada to control the money supply?

• A) changing reserve requirements
• B) changing the overnight rate
• C) open-market operations
• D) foreign exchange market operations

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more useful comparison to actual costs.

Variable Costs

Expenses that fluctuate directly with changes in production volume or activity level, such as raw materials and direct labor costs.

Flexible Budgets

Budgets that can adjust or flex for changes in the volume of activity or other relevant factors, allowing for more accurate forecasts and analysis.

Contribution Margin

The selling price per unit minus the variable cost per unit, representing the incremental money generated for each product/unit sold.