All of the following, except one, are monetary policy operating techniques in Canada. Which is the exception?
A) Switching government deposits between the Bank of Canada and the commercial banks.
B) Changing the desired reserve ratio of the commercial banks.
C) Selling bonds in the open market.
D) Changing the overnight rate and the bank rate.

Question

Quizplus · Accepted Answer

The desired reserve ratio of commercial banks is not directly manipulated as a monetary policy operating technique in Canada. Instead, the Bank of Canada influences monetary policy through methods such as adjusting the overnight rate, conducting open market operations, and managing government deposits.

All of the Following, Except One, Are Monetary Policy Operating