If the overnight rate is above target, which of the following actions does the Bank of Canada take?

Question

Answer

The Bank buys securities to increase the quantity of reserves, which lowers the overnight rate.

Answer

The Bank increases the width of the operating band.

Answer

The Bank announces that the overnight rate target has risen.

Answer

The Bank sells securities to increase the quantity of reserves, which lowers the overnight rate.

Answer

The Bank buys securities to decrease the quantity of reserves, which lowers the overnight rate.

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