When the Bank of Canada Uses Open Market Operations to Raise

question 144

Multiple Choice

When the Bank of Canada uses open market operations to raise the overnight rate, the

• A) demand for bonds increases.
• B) demand for bonds decreases.
• C) supply of bonds increases.
• D) supply of bonds decreases.
• E) supply of money increases.

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Definitions:

Composite Volcanoes

Volcanoes characterized by explosive eruptions and composed of alternating layers of lava flows, volcanic ash, and other volcanic materials.

Eruption Column

A column of hot volcanic ash and gas ejected into the atmosphere during an explosive volcanic eruption.

Felsic

Describes igneous rocks that are rich in light-colored minerals such as quartz and feldspars.

Volcanic Breccia

A type of rock composed of large volcanic fragments, often formed during explosive volcanic eruptions.