Multiple Choice
To increase the monetary base, the Bank of Canada can:
A) conduct open-market purchases.
B) conduct open-market sales.
C) raise the interest rate paid on reserves.
D) lower the required reserve ratio.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Banks create money in:<br>A) a 100-percent-reserve banking
Q24: Demand deposits are funds held in:<br>A)currency.<br>B)certificates of
Q27: In a system with 100-percent-reserve banking:<br>A)all banks
Q28: Open-market operations are:<br>A)Department of Finance purchases and
Q30: In a 100-percent-reserve banking system, banks:<br>A) can
Q30: Why does the Bank of Canada not
Q31: The currency-deposit ratio is determined by:<br>A)the Bank
Q74: The preferences of households determine the:<br>A) reserve-deposit
Q77: The money supply will decrease if the:<br>A)
Q118: If the monetary base equals $400 billion