What will an open market purchase of government bonds by the Bank of Canada NOT tend to result in,other things being equal?

Question

Quizplus · Accepted Answer

An open market purchase of government bonds by the Bank of Canada would increase the level of reserves in the banking system, leading to an increase in the volume of loans issued by the chartered banking system. This option is incorrect. On the other hand, an open market purchase of government bonds by the Bank of Canada would NOT tend to result in an increase in the price level because it does not increase the money supply. It would also typically result in a decrease in interest rates and an increase in bank reserves.

What Will an Open Market Purchase of Government Bonds by the Bank