One of the functions of the Bank of Canada is to use monetary policy,which involves changes in the money supply and changes in interest rates to affect aggregate spending,to lessen the impact of economic fluctuations on the economy.

Question

Quizplus · Accepted Answer

This statement accurately describes one of the functions of the Bank of Canada. Monetary policy is a tool used by central banks to influence the economy by adjusting interest rates, changing the money supply, and managing inflation. By using monetary policy, the Bank of Canada can help stabilize the economy during periods of economic fluctuation.

One of the Functions of the Bank of Canada Is