Which of the following Bank of Canada actions would be consistent with an expansionary policy?
A) Sell government securities
B) Raise the margin requirement
C) Buy government securities
D) Raise the reserve requirement
E) Raise the bank rate

Question

Quizplus · Accepted Answer

Buying government securities injects money into the economy, which is consistent with an expansionary policy. The other options either remove money from the economy (A, D, E) or have no direct impact on the money supply (B).

Which of the Following Bank of Canada Actions Would Be