Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
1-
Monetary policy is concerned with how much money ......... in the economy, and what that money is worth.
A -
circulates
B -
circumscribes
C -
concentrates
D -
congregated
2-
The ......... of the Bank of Canada's monetary policy framework is its inflation-control system, the goal of which is to keep inflation near 2 per cent.
A -
benchmark
B -
cornerstone
C -
landmark
D -
milestone
3-
Inflation is a ......... rise over time in the average price of goods and services.
A -
perfunctory
B -
persistent
C -
precise
D -
presumed
4-
This system provides a clear ......... of the effectiveness of monetary policy, and increases the predictability of inflation.
A -
appearance
B -
goal
C -
measure
D -
status
5-
When the level of demand for Canadian goods and services is ........., it can push the economy against the limits of its capacity to produce.
A -
sagging
B -
slight
C -
stable
D -
strong
6-
This tends to raise inflation above the midpoint, so the Bank will raise interest rates to ......... off the economy.
A -
brush
B -
cool
C -
send
D -
tick
7-
When demand is weak, inflationary pressures are likely to ..........
A -
ease
B -
spread
C -
squeeze
D -
tauten
8-
The Bank will then lower interest rates to stimulate the economy and absorb economic ..........
A -
slack
B -
spending
C -
spin
D -
surplus
9-
The Bank carries out monetary policy by influencing short-term interest rates, and it does this by raising and lowering the target for the overnight rate, the interest rate at which major financial institutions borrow and lend one-day funds among ..........
A -
businesses
B -
depositors
C -
others
D -
themselves
10-
The goal of Canadian monetary policy is to contribute to rising living ......... for all Canadians through low and stable inflation.