A new deposit to the banking system can result when
A) the Bank of Canada buys a government security from a firm, which keeps the proceeds from the sale in a company vault.
B) an individual stashes cash in a mattress.
C) the Bank of Canada buys a government security from a firm, which then deposits the proceeds from the sale in its account at a commercial bank.
D) a new immigrant to Canada sends cash to his or her home country.
E) the Bank of Canada sells a government security to a firm which then maintains the asset in a bank.
Correct Answer:
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