When the Bank of Canada wants to see an increase in the interest rates, it:

Question 38 options:

a)

sells government securities by entering into SRA (a sale and repurchase agreement).

b)

buys government securities by entering into SRA (a sale and repurchase agreement).

c)

sells government securities by entering into SPRA (special purchase and resale agreement).

d)

buys government securities by entering into SPRA (special purchase and resale agreement).

e)

None of the above