CIA4U0 Analyzing Current Economic Issues. Chapter 12: Monetary Policy Topic 3: The Tools of Monetary Policy P 274-176. The Tools of Monetary Policy Introduction. Introduction The Overnight Rate Target The Bank’s Balance Sheet. The Tools of Monetary Policy Introduction.
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Chapter 12: Monetary Policy
Topic 3: The Tools of Monetary Policy
Holdings of gold and foreign currencies (mostly USD) that are used to buy up CAD when the value of our dollar drops.
Money lent to Canada’s Financial Institutions (like an account receivable)
All bank notes issued by the Bank of Canada. Represents value owed to the holder (gold coins?)
FI reserves and savings for debt payment. Interest is paid on these and they are like an Account Payable
The BOC is the “banker” to the government. This is the Government’s “chequing account”.
A bond is a form of loan. This is one way that the government finances itself when it runs a deficit.