If you hear in the news that the Bank of Canada conducted open-market purchases, then you should expect _____ to increase.
A)reserve requirements
B)the discount rate
C)the money supply
D)the reserve-deposit ratio

Question

Quizplus · Accepted Answer

Open-market purchases by the Bank of Canada involve buying government securities, which increases the reserves of commercial banks, leading to an increase in the money supply.

If You Hear in the News That the Bank of Canada