Multiple Choice
Suppose the Bank of Canada sells $10 million in government securities to a chartered bank.And suppose the desired reserve ratio is 0.2.What is the maximum amount by which chequable deposits in the banking system could change?
A) +$10,000,000
B) -$10,000,000
C) +$50,000,000
D) -$50,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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