1) What is a criticism of the Bank of Canada targeting the interest rate to control inflation?

a) Targeting the interest rate usually pushes interest rates too high

b) its not possible for the bank of canada to change interest rates

c) interest rates affect only a little bit of the economy

d) having low inflation is not enough to achieve the banks other important goals

2) If the Bank of Canada increases the money supply, which isnottrue?

a) it is an expansionary monetary policy

b) there will be more loans

c) it is a contractionary monetary policy

d) the economy will improve

3) If you sell a bond,what are you doing?

a) making an investment into a business

b) taking a loan from someone

c) collecting interest from someone

d) giving a loan to someone