the economics of money, banking, and financial markets

(Sean Pound) #1
534 #
© 2014 Pearson Canada Inc.#



  1. 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




  2. 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




  3. 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



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