Lesson 5 Chapter 5 Flashcards
1
Q
What is a redeposit?
A
The transfer of funds from the BoC to the chartered banks to increase money supply
2
Q
What is a drawdown?
A
The transfer of funds to the bank of Canada from chartered banks to reduce the money supply
3
Q
What is an SRA?
A
Sale and Repurchase Agreements an open-market operation used by the BoC to relieve undesired upward pressure on overnight interest rates
4
Q
What is an SPRA?
A
Special Purchase and Resale Agreements
Sale and Repurchase Agreements an open-market operation used by the BoC to relieve undesired downward pressure on overnight interest rates
5
Q
What is a crowding out effect?
A
When government borrows significantly from the capital markets, resulting to having less capital for business to borrow
