The Debt Is Monetized When

question 152

Multiple Choice

The debt is monetized when:

• A) the budget is approved by the federal government.
• B) the Bank of Canada buys back debt via open-market purchases.
• C) the government raises taxes.
• D) transfer payments are decreased.

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Definitions:

Canada Student Loans

Canada Student Loans are government-funded financial aids that assist Canadian students in paying for their post-secondary education.

Prime Rate

The interest rate that banks charge their most creditworthy customers, often used as a benchmark for other rates.

Floating Rate Option

An option in a financial instrument that allows for a variable interest rate that adjusts periodically with market conditions.

Grace Period

A set time period after a payment is due during which a late fee is not charged, allowing a short extension for the payment without penalty.