MCQ quesiton

1,

Holding all else constant, when the Bank of Canada engages in an expansionary monetary policy, the interest rate received on government securities tends to and the price of government bonds will O A. fall; rise. B. rise; fall. C. rise; remain constant. D. fall; fall.Assume that banks have a desired reserve ratio of 20 percent and a London, Ontario Bank borrows $10,000 from the Bank of Canada at the bank rate. As a result: A. both chartered bank reserves and the supply of money increase by $10,000. O B. chartered bank reserves increase by $10,000, and the supply of money in the banking system potentially expands by $40,000. O C. chartered bank reserves decline by $10,000, and the supply of money falls. O D. chartered bank reserves rise by $10,000, and the supply of money in the banking system expands by as much as $50,000. Reset SelectionSuppose the exchange rate between the Canadian dollar and the British pound was $1 = 220 British pund in 2015. In 2018, the exchange rate was $1 = 100 British pound. Refer to the above information. Between 2012 and 2014, the: O A. British pound appreciated in value relative to the dollar. B. British pound price of dollars increased. OO C. dollar appreciated in value relative to the British pound. O D. dollar price of British pound declined. Reset SelectionReferlo this London Bank's balance sheet. All figures are in billions. $40,000 Demand Deposits $130,000 110,000 Stock shares 45,000 Refer to the sheet. The desired reserve ram: is 10 percent. IT a cheque for $20,000 is drawn and cleared against thiS bank, the bank's EXCESS reserves Will be: 2"") A. $1?,000 E5. $1000 C. $9,000 . D. $29,000 Re set Selection When a person deposits $100 cash into a checking account in a chartered bank: 0 A. M1+ rises but M2 Tails. 0 B. the money supply does not change immediately but will increase in the long run ifthe excess reserves resulting from this deposit are loaned out. 0 C. the money supply decreases immediately and in the long run. 0 D. the money supply decreases immediately but increases in the long run if the excess reserves resulting from this deposit are loaned out. Re set Selection