Which of the following policy tools does the Bank of Canada use most frequently?

Question

Quizplus · Accepted Answer

The Bank of Canada most frequently uses open market operations to influence interest rates and manage the money supply. They involve the buying and selling of government securities in order to either increase or decrease the money supply, which affects interest rates. The other options (changes to the discount rate, reserve requirement, and margin requirements) are less commonly used by the Bank of Canada.

Which of the Following Policy Tools Does the Bank of Canada