Two tools used by the Bank of Canada in managing the money supply are open market operations and the overnight rate.

Question

Quizplus · Accepted Answer

Open market operations involve the Bank of Canada buying or selling government securities in order to influence the amount of money in circulation, while the overnight rate is the interest rate at which banks borrow or lend money to each other overnight, which the Bank of Canada can raise or lower to affect the cost of borrowing and spending.

Two Tools Used by the Bank of Canada in Managing