the economics of money, banking, and financial markets

523 #

© 2014 Pearson Canada Inc.#

17.4 Open Market Operations

1. 
   

   The Bank of Canada ____ conducting open market operations in Government of Canada
   treasury bills and bonds in 1994.
   A) started
   B) stopped
   C) continued
   D) implemented
   Answer: B
   Diff: 1 Type: MC Page Ref: 415
   Skill: Recall
   Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
   policy

   
   


2. 
   

   The Bank of Canada most common operations have been repurchase transactions with
   ____.
   A) stockbrokers
   B) primary dealers
   C) the public
   D) other central banks
   Answer: B
   Diff: 1 Type: MC Page Ref: 415
   Skill: Recall
   Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
   policy

   
   


3. 
   

   Special Purchase and Resale Agreements ____.
   A) relieve undesired upward pressure on the overnight interest rate
   B) alleviate undesired downward pressure on the overnight financing rate
   C) relieve undesired downward pressure on the overnight interest rate
   D) alleviate undesired volatility in the overnight financing rate
   Answer: A
   Diff: 2 Type: MC Page Ref: 415
   Skill: Recall
   Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
   policy