Which of the follow is NOT a reason for the Bank of Canada to increase the bank rate?
A) Promote stable economic growth.
B) Indicate a tightening of monetary policy.
C) Send a signal regarding the direction of future monetary policy.
D) Stimulate economic activity
E) Control inflation from increasing

Question

Quizplus · Accepted Answer

Increasing the bank rate is a tool used by the Bank of Canada to cool down an overheating economy and prevent inflation from rising too quickly. It is not used to stimulate economic activity, so D is not a reason for the Bank of Canada to increase the bank rate.

Which of the Follow Is NOT a Reason for the Bank