Which of the Following Best Describes the Consequences of Open

Multiple Choice

Which of the following best describes the consequences of open market purchases conducted by the Bank of Canada?

A) Bank reserves increase and the money supply increases.
B) Bank reserves increase and the money supply decreases.
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.