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© 2014 Pearson Canada Inc.#
The purchase of private sector assets by the central bank in critical markets is known as
____.
A) quantitative easing
B) conditional statements about the future path of the policy rate
C) managing interest rate expectations
D) credit easing
Answer: D
Diff: 3 Type: MC Page Ref: 426
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy
The difference between Term PRAs and special PRAs, is that term PRAs have ____.
A) a term shorter than one business day, typically a term of 2 hours
B) a term longer than one business day, typically a term of 28 business days
C) a term longer than year, typically a term of 3 years
D) a term longer than one business day, typically a term of 6 months
Answer: B
Diff: 3 Type: MC Page Ref: 428
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy
The Bank of Canada commitments regarding the operating band for the overnight interest rate
to align market expectations of future short-term interest rates with those of the Bank are known
as ____.
A) quantitative easing
B) conditional statements about the future path of the policy rate
C) interest rate expectations
D) credit easing
Answer: B
Diff: 3 Type: MC Page Ref: 425
Skill: Recall
Objective List: 17.3 Identify the Bank of Canada's approach to monetary policy and the tools of
policy