Multiple Choice
Suppose the Bank of Canada lowers its target for the overnight interest rate and longer-term rates in the market fall as a result.Households' and firms' demand for new loans from the commercial banks would ________.In order to make the new loans,the commercial banks require more ________.
A) rise; government securities
B) fall; currency
C) rise; cash reserves
D) remain stable; excess reserves
E) fall; excess reserves
Correct Answer:
Verified
Correct Answer:
Verified
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