Multiple Choice
Two monetary policy instruments that the Bank of Canada can use are
A) the foreign exchange rate and the government budget balance.
B) the current account balance and the capital and financial account balance.
C) the monetary base and the short- term interest rate.
D) the quantity of Canadian dollars held in Canadian banks and the quantity fo Canadian dollars held by foreign central banks.
E) the federal government budget balance and the real interest rate.
Correct Answer:

Verified
Correct Answer:
Verified
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