What is most frequently used when the Bank of Canada is attempting to adjust the money supply?

Question

Quizplus · Accepted Answer

Open market operations are the most frequently used tool by the Bank of Canada to adjust the money supply. This involves buying or selling government securities in the open market, which affects the amount of money in circulation. The Bank can increase the money supply by buying securities, which injects funds into the banking system, or decrease the money supply by selling securities, which removes funds from circulation. Taxation may indirectly affect the money supply, but it is not a primary tool used by the Bank. Deposit switching and moral suasion are not commonly used tools for adjusting the money supply.

What Is Most Frequently Used When the Bank of Canada