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

Multiple Choice

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

A) The Bank of Canada sells Treasury bills, which increases the money supply.
B) The Bank of Canada sells 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.