the economics of money, banking, and financial markets

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18.8 Appendix 18.1: Bank of Canada Policy Procedures: Historical Perspective

1. 
   

   During the 1960s and early 1970s, the Bank of Canada used ____ as the intermediate
   target in the conduct of monetary policy.
   A) the interest rate
   B) the exchange rate
   C) the monetary base
   D) None of the above
   Answer: A
   Diff: 1 Type: MC Page Ref: 463
   Skill: Applied
   Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective

   
   


2. 
   

   During the 1960s and early 1970s, the Bank of Canada used ____ as the intermediate
   target(s), to keep the foreign exchange and domestic bonds markets functioning smoothly.
   A) the exchange rate and the interest rate
   B) the interest rate
   C) the monetary base
   D) None of the above
   Answer: B
   Diff: 1 Type: MC Page Ref: 463
   Skill: Applied
   Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective

   
   


3. 
   

   During the 1960s and early 1970s, the Bank of Canada's policy of using interest rates at the
   intermediate target was ____.
   A) expansionary and resulted in double digit inflation
   B) contractionary and resulted in a decrease in the inflation rate
   C) neither expansionary nor contractionary
   D) None of the above
   Answer: A
   Diff: 1 Type: MC Page Ref: 463
   Skill: Applied
   Objective List: 18.4 Outline Bank of Canada policy procedures from a historical perspective