Which of the following is a tool used by the Bank of Canada in managing the money supply in Canada?

Question

Quizplus · Accepted Answer

Open market operations are the main tool used by the Bank of Canada to manage the money supply in Canada. This involves buying or selling government securities, which affects the amount of reserves held by banks and ultimately the amount of money in circulation. Closed market operations, raising bank taxes, and importing foreign currency are not commonly used tools for managing the money supply.

Which of the Following Is a Tool Used by the Bank