When the Bank of Canada buys bonds from a chartered bank, chartered bank reserves increase and interest rates fall.

Name: When the Bank of Canada buys bonds from a chartered bank, chartered bank reserves increase and interest rates fall.
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When the Bank of Canada buys bonds from a chartered bank, the chartered bank's reserves increase, which allows them to lend more money at lower interest rates, thereby leading to a decrease in interest rates.

When the Bank of Canada Buys Bonds from a Chartered