Which of the following has the most influence on the supply of money?
A) interest rates
B) prices
C) the transactions demand for money
D) the Bank of Canada

Question

Which of the following has the most influence on the supply of money?  
A) interest rates 
B) prices 
C) the transactions demand for money 
D) the Bank of Canada

Quizplus · Accepted Answer

The Bank of Canada has the most influence on the supply of money as it is responsible for setting monetary policy and controlling the money supply through various tools, including open market operations and setting interest rates. While interest rates, prices, and the transactions demand for money can also have an impact on the supply of money, they are all ultimately influenced by the decisions and actions of the central bank.

Which of the Following Has the Most Influence on the Supply