When the Bank of Canada sells government securities to a bank, how are the Bank of Canada's assets affected?
A) The bank's reserves held at the Bank of Canada increase.
B) The bank's reserves held at the Bank of Canada decrease.
C) Bank of Canada notes increase.
D) The amount of the Bank of Canada's government securities increases.
E) The amount of the Bank of Canada's government securities decreases.
Correct Answer:
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