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When the Bank of Canada Buys Canadian Government Securities from a Chartered

Question 100

Multiple Choice

When the Bank of Canada buys Canadian government securities from a chartered bank, what is the immediate effect on that chartered bank's balance sheet assets and liabilities?  


A)  Assets decrease and liabilities decrease. 
B)  Assets increase and liabilities increase. 
C)  Assets increase and liabilities decrease. 
D)  The total amount of assets or liabilities remain the same.

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