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The 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
The 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 sells $ 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 impact on the money supply is: Multiple Choice increased by $ decreased by $ decreased by $ decreased by $ multiplied by the reciprocal of the desired reserve ratio. not been affected. Prev of Next
The 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 sells $ 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 impact on the money supply is:
Multiple Choice
increased by $
decreased by $
decreased by $
decreased by $ multiplied by the reciprocal of the desired reserve ratio.
not been affected.
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