How does the Bank of Canada conduct open-market transactions?

Question

Quizplus · Accepted Answer

The Bank of Canada conducts open-market transactions by buying or selling government bonds from or to the public. This is a tool used to influence the level of reserves in the banking system, which in turn affects the level of interest rates and the overall economy. The Bank of Canada buys government bonds in order to increase the money supply, while selling them decreases the money supply.

How Does the Bank of Canada Conduct Open-Market Transactions