How can the Bank of Canada increase the money supply?

Question

Quizplus · Accepted Answer

To increase the money supply, the Bank of Canada can conduct open-market purchases, which involves buying government securities from commercial banks, thereby injecting new money into the economy. Lowering the bank rate, which is the interest rate at which commercial banks can borrow from the Bank of Canada, also encourages banks to borrow and lend more, further increasing the money supply. Therefore, the combination of open-market purchases and a lower bank rate would be the best way for the Bank of Canada to increase the money supply.

How Can the Bank of Canada Increase the Money Supply