f the Bank of Canada wants to increase the money supply, it can sell government securities.

Question 21 options:

	a) True
	b) False

Question 22 (1 point)

In Canada, who controls the supply of money?

Question 22 options:

a)	The market.

b)	The Bank of Canada.

c)	Canadian Chartered Banks.

d)	The Department of Finance.

Question 23 (1 point)

What is the effect of an increase in the money supply?

Question 23 options:

a)	It will lower the interest rate.

b)	It will decrease the demand for money.

c)	It will increase the interest rate.

d)	It will decrease the quantity of investment spending.

Question 24 (1 point)

Which of the following would help eliminate a recessionary gap?

Question 24 options:

a)	An increase in exports

b)	An increase in government spending

c)	All of these

d)	An increase in investment

Question 25 (1 point)

The most important function of the Bank of Canada is to regulate the money supply.

Question 25 options:

	a) True
	b) False

Previous PageNext Page

Page 5 of 8

Submit Quiz3 of 40 questions saved