What action will the Bank of Canada take if it wishes to expand the money supply?

Question

Quizplus · Accepted Answer

The Bank of Canada can expand the money supply by buying government bonds from the market. When the Bank of Canada purchases government bonds, it pays for them by creating new money. This increases the supply of money in the economy, making it easier for people and businesses to borrow and spend, which can stimulate economic growth. Selling government bonds would have the opposite effect, reducing the money supply. Buying or selling stocks is not a typical tool for the Bank of Canada to use to influence the money supply.

What Action Will the Bank of Canada Take If It