When the Bank of Canada Makes an Open Market Purchase

question 16

Multiple Choice

When the Bank of Canada makes an open market purchase, its assets _______ and its liabilities _______.

• A)decrease; increase
• B)increase; increase
• C)decrease; decrease
• D)increase; decrease
• E)decrease; do not change

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Definitions:

Positive Instance

An example or case that supports a theory or hypothesis.

Complete Enumeration

A method involving listing all possible members of a set to show a proposition's truth.

Generalization

The process or act of formulating general concepts by abstracting common properties of instances.

Examination

A detailed inspection or analysis of an object, person, or situation for the purpose of evaluation.