Exam 17: Tools of Monetary Policy

If government deposits at the Bank of Canada are predicted to increase,the Bank will offset the transaction through government debt auctions to ________ settlement balances.

The Bank of Canada uses the ________ as its operating instrument.

The target for settlement balances is set at ________.

A repo is a ________.

Large Value Transfer System (LVTS)participants can make a payment only if they ________.

The market equilibrium,in which the quantity of reserves demanded equals the quantity of reserves supplied ________.

The operating band for the overnight interest rate is ________.

The overnight interest rate ________.

The facility at which banks can borrow reserves from the Bank of Canada is called the ________.

Quantitative easing is regarded as an unconventional form of monetary policy because it targets the ________.

The overnight rate is ________.

If the Bank of Canada expects the economy to slow down,it ________ the operating band for the overnight interest rate.

The LVTS was put in place in order to eliminate the ________.

If LVTS participating financial institutions have insufficient settlement balances ________.

The Bank of Canada's operating band is ________ basis points or ________.

45 basis points is equal to ________.

The Bank of Canada most common operations have been repurchase transactions with ________.

The overnight interest rate is also known as the ________.

If the operating target of the Bank of Canada is 4 percent then the bank rate is ________.

Changes to the operating band are announced by the Bank of Canada ________ times a year.