How is the supply of money determined?
A) by the price level
B) by the Ministry of Finance
C) by the Bank of Canada
D) by the demand for money

Question

Quizplus · Accepted Answer

The supply of money is ultimately determined by the actions and decisions of the Bank of Canada. The Bank of Canada controls the money supply through various monetary policy tools, such as open market operations, reserve requirements, and the discount rate. The Ministry of Finance does not directly determine the supply of money, although its policies can indirectly affect it. The price level and demand for money can also impact the supply of money, but they are not the primary determinants.

How Is the Supply of Money Determined