What is the Bank of Canada's most frequently used and most flexible tool?

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities by the central bank to influence the money supply and interest rates in the economy. This tool is the most frequently used and flexible tool of the Bank of Canada because it allows for direct control over the quantity and price of money in the economy. The Bank of Canada can adjust the amount of money in circulation by buying or selling government securities, which affects interest rates and ultimately economic activity.

What Is the Bank of Canada's Most Frequently Used and Most