Suppose the Bank of Canada purchases $5,000 in Canadian government securities from the Last National Bank, and the Last National Bank's account at the Bank of Canada increases by $5,000.How does this transaction affect the Last National Bank's balance sheet?
A) The Last National Bank's balance sheet shows a change in the composition of its assets.
B) The Last National Bank's assets rise by $5,000 and its liabilities rise by $5,000.
C) The National Bank's assets fall by $5,000 and its liabilities fall by $5,000.
D) The National Bank's assets rise by $5,000 and its liabilities fall by $5000.
Correct Answer:
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