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Suppose banks desired a 100 percent reserve ratio. What would be the effect of a $4 million decrease in banking reserves?

Question 15 options:

a $400 million increase in the money supply

a $400 million decrease in the money supply

a $4 million increase in the money supply

a $4 million decrease in the money supply

question 17

Which of the following best describes the role of the Bank of Canada as the lender of last resort?

Question 17 options:

It lends money to developing nations whose own central banks have failed.

It lends money to people in localities NOT served by chartered banks.

It keeps the money supply from drying up during economic panics.

It provides mortgage money to people living in poverty

question 18

Which of the following is NOT a function of the Bank of Canada?

Question 18 options:

being a lender of last resort

issuing currency

serving as a bank for the federal government

setting currency-exchange rates