Which Statement Best Describes the Process of Open-Market Purchases Conducted

Multiple Choice

Which statement best describes the process of open-market purchases conducted by the Bank of Canada?

A) The Bank of Canada buys Treasury bills, which increases the money supply.
B) The Bank of Canada buys Treasury bills, which decreases the money supply.
C) The Bank of Canada borrows from member banks, which increases the money supply.
D) The Bank of Canada lends money to member banks, which decreases the money supply.