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Suppose the Bank of Canada Decides to Reduce the Interest

Question 40

Multiple Choice

Suppose the Bank of Canada decides to reduce the interest rate.Which of the following actions will produce the desired outcome?


A) The Bank sells treasury bills in the open-market operations.
B) The Bank reduces the Bank rate.
C) The Bank buys treasury bills in the open-market operations.
D) The Bank increases the desired reserve ratio.

Correct Answer:

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