Which of the following actions by the Bank of Canada will increase the money supply and stimulate economic activity?

Question

Quizplus · Accepted Answer

Buying government securities in open market operations is a monetary policy tool used by the central bank to increase the money supply and stimulate economic activity. When the Bank of Canada buys government securities, it injects new money into the economy, increasing the supply of money in circulation. This can lower interest rates, making it easier for individuals and businesses to borrow money and invest in the economy. Increasing the money supply can also boost consumer and business spending, leading to increased economic activity.

Which of the Following Actions by the Bank of Canada