When the Bank of Canada Wants to See an Increase

Multiple Choice

When the Bank of Canada wants to see an increase in the interest rates, it:

A) sells government securities by entering into SRA (a sale and repurchase agreement) .
B) buys government securities by entering into SRA (a sale and repurchase agreement) .
C) sells government securities by entering into SPRA (special purchase and resale agreement) .
D) buys government securities by entering into SPRA (special purchase and resale agreement) .