Targeting the overnight rate allows the Bank of Canada some ability to control bank reserves and thus the money supply.Explain how each of the following tools allows the central to fine-tune its control of bank reserves.
a. Conducting open market operations
b. Changing the bank rate

Question

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The Answer of Targeting the overnight rate allows the Bank of Canada some ability to control bank reserves and thus the money supply.Explain how each of the following tools allows the central to fine-tune its control of bank reserves.
a. Conducting open market operations
b. Changing the bank rate

Targeting the Overnight Rate Allows the Bank of Canada Some