In Canada, the money supply is determined:
A)only by the Bank of Canada.
B)only by the behaviour of individuals who hold money and of banks in which money is held.
C)jointly by the Bank of Canada and by the behaviour of individuals who hold money and of banks in which money is held.
D)according to a constant-growth-rate rule.

Question

Quizplus · Accepted Answer

The money supply in Canada is determined jointly by the Bank of Canada, which sets monetary policy, and by the behavior of individuals and banks, which affects how money circulates and is held within the economy.

In Canada, the Money Supply Is Determined