Both ________ and ________ Are Bank of Canada Assets

question 133

Multiple Choice

Both ________ and ________ are Bank of Canada assets.

• A) notes in circulation; reserves
• B) notes in circulation; government securities
• C) government securities; advances to banks
• D) government securities; reserves

---

Definitions:

Substitution Effect

The change in consumption resulting from a change in the relative prices of goods, prompting consumers to replace more expensive items with less costly alternatives.

Income Effect

The shift in income for an individual or the economy, and its influence on the demand for a specific good or service.

Wages Increase

The act or occurrence of raising the amount of money that workers are paid for their labor.

Consumer's Optimal

The point at which an individual achieves the best possible satisfaction or utility from the consumption of goods and services, given their budget constraints.