In recent years, what has been the predominant method used by the Bank of Canada to alter the money supply?
A) bank reserves
B) the monetary growth rate
C) the exchange rate
D) the bank rate

Question

Quizplus · Accepted Answer

The Bank of Canada's predominant method to alter the money supply in recent years has been through the use of the bank rate. The bank rate is the interest rate at which the Bank of Canada lends money to other financial institutions, and changing the bank rate can influence borrowing and lending throughout the economy, which in turn affects the money supply.

In Recent Years, What Has Been the Predominant Method Used