Final answer:
The Bank of Canada carries out monetary policy through activities such as issuing/distributing currency, which is a part of controlling the money supply.
Step-by-step explanation:
The activity performed by the Bank of Canada as it carries out its monetary policy is C) Issuing/distributing currency.
Conducting monetary policy is a key function of the Bank of Canada, which involves actions that influence the economy through changes to interest rates and credit conditions. These changes affect the amount of borrowing and spending within the country, with the aim of achieving macroeconomic goals like low inflation and low unemployment.
The Bank of Canada, much like other central banks including the U.S. Federal Reserve and the European Central Bank, has tools for executing monetary policy such as open market operations, reserve requirements, and discount rates.
Issuing and distributing currency is related to the control of the money supply, which is a crucial aspect of the central bank's monetary policy activities.