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Business English Exercises
 

Canada's Monetary Policy

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 155
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canadas monetary policy answer 1
Monetary policy is concerned with how much money circulates in the economy, and what that money is worth.

Correct answer: (a) circulates

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canadas monetary policy answer 2
The cornerstone 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.

Correct answer: (b) cornerstone

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canadas monetary policy answer 3
Inflation is a persistent rise over time in the average price of goods and services.

Correct answer: (b) persistent

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canadas monetary policy answer 4
This system provides a clear measure of the effectiveness of monetary policy, and increases the predictability of inflation.

Correct answer: (c) measure

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canadas monetary policy answer 5
When the level of demand for Canadian goods and services is strong, it can push the economy against the limits of its capacity to produce.

Correct answer: (d) strong

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canadas monetary policy answer 6
This tends to raise inflation above the midpoint, so the Bank will raise interest rates to cool off the economy.

Correct answer: (b) cool

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canadas monetary policy answer 7
When demand is weak, inflationary pressures are likely to ease.

Correct answer: (a) ease

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canadas monetary policy answer 8
The Bank will then lower interest rates to stimulate the economy and absorb economic slack.

Correct answer: (a) slack

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canadas monetary policy answer 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 themselves.

Correct answer: (d) themselves

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canadas monetary policy answer 10
The goal of Canadian monetary policy is to contribute to rising living standards for all Canadians through low and stable inflation.

Correct answer: (d) standards

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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