When the Bank of Canada sells a government security to a commercial bank,
A) the cash reserves of the commercial bank decrease.
B) the net worth of the commercial bank increases.
C) the loans of the commercial bank will increase.
D) the balance sheet of the commercial bank is thrown off balance.
Correct Answer:
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Q1: The Canadian Payments Association
A)monitors the chartered banks.
B)handles
Q2: Open market operations are
A)the buying of existing
Q4: The initial impact of the Bank of
Q5: To increase the money supply
A)the Bank of
Q6: With respect to the nation's money supply,the
Q7: The Board of Directors of the Bank
Q8: The Bank of Canada accepts deposits from
A)the
Q9: The Bank of Canada acts as the
Q10: The Bank of Canada is said to
Q11: If the money multiplier is 2.4 and
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