Which Statement Best Describes the Process of Open-Market Purchases Conducted

question 186

Multiple Choice

Which statement best describes the process of open-market purchases conducted by the Bank of Canada?

• A) The Bank of Canada buys Treasury bills, which increases the money supply.
• B) The Bank of Canada buys Treasury bills, which decreases the money supply.
• C) The Bank of Canada borrows from member banks, which increases the money supply.
• D) The Bank of Canada lends money to member banks, which decreases the money supply.

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