Central Bank
The Bank of Canada.
What is the central bank of Canada called?
Investment
What is the primary driver of demand for loanable funds?
H₂O
What is the chemical symbol for water?
Changes in the Interest Rate.
What is the primary tool the Central bank uses to influence money supply?
It increases the supply of Loanable Funds
How does an increase in the interest rate affect the supply of loanable funds?
Leonardo da Vinci
Who painted the Mona Lisa?
Changes in the interest rate, Open Market Operations, Minimum Reserve Requirements and Quantitative Easing
What are the three main tools of monetary policy?
It decreases the supply of Loanable Funds
What is the effect of increased government borrowing on the supply of loanable funds?
Jupiter
What is the largest planet in our solar system?
The issue of an Inflationary Gap.
What is a "tight" monetary policy designed to combat?
It increases the demand for Loanable Funds
What is the effect of increased business optimism on the demand for loanable funds?
1939
What year did World War II begin?
A tool of monetary policy in which the central bank injects money directly into the economy through purchasing corporate bonds
What is quantitative easing (QE)?
The intersection of demand and supply of loanable funds.
What determines the equilibrium interest rate in the loanable funds market?
Ottawa
What is the capital of Canada?