The BOC sells $1B of its foreign assets to buy $1B in Canadian dollars from domestic banks. The M in Canada will i-rates will The Canadian exchanges rate (C$) will When the BOC does not counter the change in the Canadian ME, we call this : EX market intervention. To counter the change in the Canadian M, BỌC uses • FX market intervention by • bonds which causes the Mỹ to
The BOC sells $1B of its foreign assets to buy $1B in Canadian dollars from domestic banks. The M in Canada will i-rates will The Canadian exchanges rate (C$) will When the BOC does not counter the change in the Canadian ME, we call this : EX market intervention. To counter the change in the Canadian M, BỌC uses • FX market intervention by • bonds which causes the Mỹ to
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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BOC is Bank of Canada
a.) Decrease, not change, increase
B.) Decrease, no change, increase
C.) Decrease, no change, increase
D.) sterilized, unsterilized
E.) sterilized, unsterilized
F.) buying, selling, dumping, sterilizing
G.) Increase decrease no change unsterilized
![The BOC sells $1B of its foreign assets to buy $1B in Canadian dollars from domestic banks.
The M$ in Canada will
i-rates will
The Canadian exchanges rate (C$) will
When the BOC does not counter the change in the Canadian ME, we call this
+ FX market intervention.
To counter the change in the Canadian M, BOC uses
EX market intervention by
* bonds which causes the Mỹ to](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F136b6877-3f7f-4614-872b-d1abe9b301e7%2F39d6115c-8fff-412d-aa60-1d6316746b0c%2Fdenrfmk_processed.png&w=3840&q=75)
Transcribed Image Text:The BOC sells $1B of its foreign assets to buy $1B in Canadian dollars from domestic banks.
The M$ in Canada will
i-rates will
The Canadian exchanges rate (C$) will
When the BOC does not counter the change in the Canadian ME, we call this
+ FX market intervention.
To counter the change in the Canadian M, BOC uses
EX market intervention by
* bonds which causes the Mỹ to
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