When the Bank of Canada conducts an open-market purchase,it buys bonds from the:

Question

Quizplus · Accepted Answer

When the Bank of Canada conducts an open-market purchase, it aims to increase the money supply in the economy, and it does so by buying government bonds from the public. By buying bonds, the bank injects cash into the economy, which increases the reserves of banks and encourages lending and spending. The bank does not buy bonds from Finance Canada or Revenue Canada, as these are government departments, and the International Monetary Fund is an international organization that does not issue bonds.

When the Bank of Canada Conducts an Open-Market Purchase,it Buys