Two Monetary Policy Instruments That the Bank of Canada Can

Question 37
Multiple Choice

Two monetary policy instruments that the Bank of Canada can use are A)the federal government budget balance and the real interest rate. B)the quantity of Canadian dollars held in Canadian banks and the quantity fo Canadian dollars held by foreign central banks. C)the monetary base and the short-term interest rate. D)the foreign exchange rate and the government budget balance. E)the current account balance and the capital and financial account balance.