The Bank of Canada's repurchase transactions are an advantage because ________.
A) they occur at the initiative of the Bank of Canada
B) the bank has complete control over the volume
C) they are monopolized by the Bank of Canada
D) Only A and B of the above.

Question

Quizplus · Accepted Answer

Repurchase transactions are initiated by the Bank of Canada, which gives the bank complete control over the volume. While these transactions are not monopolized by the Bank of Canada, it is the only entity that can carry out these operations with the same level of efficiency and speed. Therefore, the advantages of the Bank of Canada's repurchase transactions are that they occur at the initiative of the bank and the bank has complete control over the volume.

The Bank of Canada's Repurchase Transactions Are an Advantage Because