The conduct of monetary policy in Canada is a real-world application of the modern central banking theory.Thus,the Bank of Canada's main monetary policy tool is
A) the money supply.
B) the bank rate.
C) the key policy rate.
D) the prime business rate.
E) potential output.

Question

Quizplus · Accepted Answer

The Bank of Canada's main monetary policy tool is the key policy rate, which influences other interest rates and helps control inflation and stabilize the economy.

The Conduct of Monetary Policy in Canada Is a Real-World