If the Bank of Canada buys a government bond from a member of the public,what is the effect on the banking system and the money supply?

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When the Bank of Canada buys a government bond from a member of the public, the member of the public receives payment directly from the Bank of Canada in exchange for the bond. This payment creates new reserves in the banking system, as the member of the public is likely to deposit the payment into their bank account. The increase in reserves allows banks to make additional loans, which increases the money supply. Hence, the banking system has more reserves, and the money supply tends to grow.

If the Bank of Canada Buys a Government Bond from a Member