In Practice,it Is Not Possible for the Bank of Canada

Multiple Choice

In practice,it is not possible for the Bank of Canada to control the money supply because

A) the resulting effects on the value of the Canadian dollar are difficult to predict.
B) it cannot control the process of deposit creation carried out by the commercial banks.
C) it cannot control the amount of cash reserves that are injected into or withdrawn from the banking system.
D) it does not have the legal power to do so.
E) None of the above-the Bank of Canada could control the money supply if it chose to do so.