Multiple Choice
If the Bank of Canada sells government securities to the public, which of the following transactions take place?
A) The demand deposits of chartered banks are unchanged, but their reserves increase.
B) The demand deposits and reserves of chartered banks both decrease.
C) The demand deposits of chartered banks are unchanged, but their reserves decrease.
D) The demand deposits and reserves of chartered banks are both unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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