When the Bank of Canada buys government bonds from chartered banks, (a) The chartered banks give up a part of their holdings of securities (the government bonds) to the Bank of Canada. (b) The Bank of Canada, in paying for these securities, Blank______. Multiple choice question. decreases the reserves of the chartered banks by the amount of the purchase of the securities which decreases the Bank of Canada's liabilities increases the reserves of the chartered banks by the amount of the purchase of the securities which decreases the Bank of Canada's liabilities increases the reserves of the chartered banks by the amount of the purchase of the securities which increases the Bank of Canada's liabilities decreases the reserves of the chartered banks by the amount of the purchase of the securities which increases the Bank of Canada's liabilities