Which of the following examples constitutes a new deposit to the Canadian commercial banking system?

Question

Quizplus · Accepted Answer

When an individual immigrates to Canada and deposits money from abroad, it constitutes a new deposit to the Canadian commercial banking system. This increases the total deposits in the banking system and contributes to the money supply.

Option A does not constitute a new deposit as the money is just transferred from one financial institution to another within the same banking system. Option C does not constitute a new deposit either as the cash is not added to the banking system until it is deposited in an account. Option D and E do not involve individual deposits into the banking system, but rather transactions between the Bank of Canada and individuals/firms.

Which of the Following Examples Constitutes a New Deposit to the Canadian