When the Bank of Canada sells Canadian government securities to a chartered bank, what is the immediate effect on that bank's balance sheet?
A) a decrease in assets, and an increase in liabilities
B) an increase in assets, and a decrease in liabilities
C) an increase in assets, and an increase in liabilities
D) a change in the type of assets the bank is holding, but no change in the type of liabilities
Correct Answer:
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