Suppose the Bank of Canada decides to increase the money supply by $10 billion.In Canada,the currency-deposit ratio is 0.1485,and the reserve-deposit ratio is 0.0079.How much should the Bank of Canada change the monetary base?
A) $1.4 billion
B) $14.85 billion
C) $10 billion
D) $14.85 million
Correct Answer:
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Q1: Assume that the currency-deposit ratio is 0.3
Q14: The currency-deposit ratio is determined by
A)banks.
B)the public.
C)the
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Q16: The monetary base is equal to
A)banks' reserves
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Q18: The money supply is $10 million,currency held
Q21: The leadership of the Bank of Canada
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Q23: If the money multiplier is 10,the sale
Q24: When was the Bank of Canada created?
A)1914
B)1934
C)1946
D)1990
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