The Bank of Canada's two main monetary policy targets are
A)the money supply and the inflation rate.
B)the money supply and the interest rate.
C)the interest rate and real GDP.
D)the inflation rate and financial market stability.
E)the inflation rate and real GDP growth.

Question

Quizplus · Accepted Answer

The Bank of Canada's two main monetary policy targets are the money supply and the interest rate. The bank sets a target range for the overnight interest rate, which is the rate at which banks lend funds to each other. By influencing this rate, the bank can indirectly control the money supply in the economy, which affects inflation and economic growth.

The Bank of Canada's Two Main Monetary Policy Targets Are