The Bank of Canada conducts its open-market operations directly in response to

Question

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The Bank of Canada conducts its open-market operations in response to the changing demand for cash reserves from commercial banks. This demand can vary based on factors such as changes in the economy, interest rates, and government policies. By buying and selling government securities, the Bank of Canada can influence the supply of cash reserves in the banking system, which in turn affects the overall money supply and can help to achieve the Bank's monetary policy goals.

The Bank of Canada Conducts Its Open-Market Operations Directly in Response