Which factor is a tool used by the Bank of Canada in the conduct of monetary policy?

Question

Quizplus · Accepted Answer

Buying and selling federal government bonds is a tool used by the Bank of Canada in the conduct of monetary policy. This helps to influence the overnight interest rate, which is the rate that banks use to borrow and lend money amongst each other. By buying bonds, the Bank of Canada injects money into the economy, causing interest rates to decrease. Conversely, selling bonds causes interest rates to increase.

Which Factor Is a Tool Used by the Bank of Canada