In the Simple Deposit Expansion Model, a Decline in Chequable

question 86

Multiple Choice

In the simple deposit expansion model, a decline in chequable deposits of $500 when the desired reserve ratio is equal to 20 percent implies that the Bank of Canada ________.

• A) sold $250 in government bonds
• B) sold $100 in government bonds
• C) sold $50 in government bonds
• D) purchased $100 in government bonds

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Definitions:

Control-Oriented

An approach or system focused on regulating processes, activities, or people to ensure conformity and efficiency.

High-Mach

Refers to individuals with a high Machiavellianism trait, characterized by manipulation, a focus on personal gain, and a disregard for morality in achieving goals.

Dishonest

Characterized by a lack of truthfulness, integrity, or straightforwardness, especially with the intention to cheat or deceive.

Takes Advantage

Behaviors or actions through which an individual or group exploits situations or others for their own benefit, often unfairly.