Multiple Choice
When a chartered bank sells Canadian government securities to the Bank of Canada, what is the immediate effect on reserves?
A) The bank's desired reserves increase.
B) The bank's desired reserves decrease.
C) The bank's excess reserves increase.
D) The bank's excess reserves decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Q121: Which of the following best describes the
Q122: Assume the banking system has no excess
Q123: Which of the following is NOT an
Q124: Which of the following does liquidity NOT
Q125: Consider the following money supplies: currency and
Q127: Suppose the simple money multiplier is 5.What
Q128: A bank finds itself short of desired
Q129: Which of the following is a reason
Q130: Which of the following is a liability
Q131: Suppose a bank has $1 million in