Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?
A) The Bank of Canada buying government securities
B) The Bank of Canada raising the margin requirement
C) The Bank of Canada raising the reserve requirement
D) The Bank of Canada raising the discount rate

Question

Quizplus · Accepted Answer

When the Bank of Canada buys government securities, it injects money into the economy and increases the supply of money and credit, which leads to lowered interest rates.

Which of the Following Actions Would Have the Effect of Increasing