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To Maintain the Overnight Loan Rate When Demand for Monetary

Question 58

Multiple Choice

To maintain the overnight loan rate when demand for monetary base temporarily increases, the Bank of Canada can:


A) use the tool of special purchase and resale agreement (SPRA) .
B) increase the bank rate.
C) use the tool of sale and repurchase agreement (SRA) .
D) sell government bonds to chartered banks.

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