The amount of money in Canada is determined by
A) the Bank of Canada.
B) the commercial banks.
C) the public.
D) the combined behaviour of the commercial banks and the public.
E) the combined behaviour of the commercial banks and the public,and the actions of the Bank of Canada.

Question

Quizplus · Accepted Answer

The amount of money in Canada is determined by the combined behaviour of the commercial banks and the public, as they create and use money in the economy. However, the actions of the Bank of Canada, such as setting interest rates and printing money, can also influence the amount of money in circulation. Therefore, both factors contribute to determining the amount of money in Canada, making choice E the best answer.

The Amount of Money in Canada Is Determined by