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When the Bank of Canada Provides Advances to the Chartered

Question 5

Multiple Choice

When the Bank of Canada provides advances to the chartered banks in Canada:


A) it engages in open market operations in order to regulate the money supply.
B) it provides high-powered money directly to the banking system.
C) it raises the bank rate.
D it lowers the desired reserve ratio so that it is easier for the Bank of Canada to borrow money from the . commercial banking system.

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