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If the Bank of Canada Wants to Decrease the Money

Question 1

Multiple Choice

If the Bank of Canada wants to decrease the money supply, it can ________; if it wants to increase the money supply, it can ________.


A) sell government securities; buy government securities
B) raise the bank rate; buy government securities
C) increase the value of the Canadian dollar; decrease the value of the Canadian dollar
D) lower the bank rate; sell government securities
E) buy government securities; sell government securities

Correct Answer:

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