Which is the most important tool the Bank of Canada has in preventing financial panics?

Question

Quizplus · Accepted Answer

Lending to commercial banks is the most direct and effective tool the Bank of Canada has to prevent financial panics. By providing liquidity to banks in times of crisis, it ensures that the banking system remains stable and can meet the demands of depositors, thus preventing runs on banks and maintaining confidence in the financial system.

Which Is the Most Important Tool the Bank of Canada