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e Canadian chartered banking system is instrumental in adjusting the money supply in line with the Bank of Canada's monetary policy directives. Imagine that Maple

e Canadian chartered banking system is instrumental in adjusting the money supply in line with the Bank of Canada's monetary policy directives. Imagine that "Maple Leaf Bank" engages in a transaction where it Ils $10,000 worth of government securities to a securities dealer. The dealer completes the purchase with cash, which "Maple Leaf Bank" then places into its vault cash. Following this individual transaction, the pact on the money supply is:
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decreased by $10,000.
increased by $100,000.
decreased by $10,000 multiplied by the reciprocal of the desired reserve ratio.
not been affected.
decreased by $100,000.
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