The chairman of the Bank of Canada can accelerate economic activity by lowering interest rates.What primary method does the Bank of Canada use to accomplish this?

Question

Quizplus · Accepted Answer

The Bank of Canada uses open market operations to lower interest rates. This involves buying government securities on the open market, which increases the supply of money in the economy and lowers interest rates. Increasing the discount rate, increasing reserve requirements, and selling margin requirements would all have the opposite effect, raising interest rates and slowing economic activity.

The Chairman of the Bank of Canada Can Accelerate Economic