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What Activity Does the Bank of Canada Undertake When It

Question 13

Multiple Choice

What activity does the Bank of Canada undertake when it carries out open-market operations?  


A)  It buys and sells the bonds, but NOT the notes, of leading Canadian corporations. 
B)  It changes the overnight loans rate, which generally increases the amount of available credit. 
C)  It provides funds so that healthy depository institutions can purchase weaker ones on the open market. 
D)  It deals in the purchase and sale of government securities.

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