If the Bank of Canada wants to increase the money supply,it will purchase government securities.

Question

Quizplus · Accepted Answer

When the Bank of Canada wants to increase the money supply, it can buy government securities from banks, which in turn increases the reserves of those banks. This increase in reserves allows banks to lend out more money to businesses and individuals, thereby increasing the overall money supply in the economy.

If the Bank of Canada Wants to Increase the Money