the economics of money, banking, and financial markets

525 #

© 2014 Pearson Canada Inc.#

8. 
   

   If the Bank of Canada wants to alleviate undesired downward pressure on the overnight
   financing rate it will enter into a ____.
   A) Special Purchase and Resale Agreement
   B) Sale and Repurchase Agreement
   C) Swap
   D) Repo
   Answer: B
   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

   
   


9. 
   

   A reverse repo is a ____.
   A) Special Purchase and Resale Agreement
   B) Sale and Repurchase Agreement
   C) Swap
   D) Repo
   Answer: B
   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

   
   


10. 
    

    If the Bank of Canada wants to alleviate undesired downward pressure on the overnight
    financing rate it will enter into a ____.
    A) Purchase and Resale Agreement
    B) Repurchase Agreement
    C) Swap
    D) Reverse Repo
    Answer: D
    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

    
    


11. 
    

    If the Bank of Canada wants to temporarily inject reserves in the banking system, it will
    engage in ____.
    A) a repurchase agreement
    B) a "swap" transaction
    C) a reverse repurchase agreement
    D) None of the above.
    Answer: A
    Diff: 2 Type: MC Page Ref: 415 - 416
    Skill: Applied
    Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
    policy