As the Canadian economy approached the millennium, January 1, 2000, many people cautiously began to hold larger than normal quantities of currency as protection against a possible disruption of banking services that could result from computer glitches (the so-called Y2K bug).
a.How did this greater preference for currency affect the money supply?
b.How could the Bank of Canada offset such an increase in currency preferences?

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The Answer of As the Canadian economy approached the millennium, January 1, 2000, many people cautiously began to hold larger than normal quantities of currency as protection against a possible disruption of banking services that could result from computer glitches (the so-called Y2K bug).
a.How did this greater preference for currency affect the money supply?
b.How could the Bank of Canada offset such an increase in currency preferences?

As the Canadian Economy Approached the Millennium, January 1, 2000