Question
Which of the following is true about the Bank of Canada's asset purchases? Question 5 options: The Bank of Canada purchased a small amount of
Which of the following is true about the Bank of Canada's asset purchases?
Question 5 options:
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The Bank of Canada purchased a small amount of assets during the Covid-19 pandemic to increase the money supply, but the total amount was far less than it purchased in response to the Great Recession.
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The Bank of Canada has not used asset purchases to intervene in the money supply for several decades, including during the Covid-19 pandemic.
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While commercial banks create some money when they extend new loans, the majority of money in the economy today is created by Bank of Canada asset purchases.
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The Bank of Canada uses asset purchases to increase the money supply.
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