A New Deposit to the Banking System Can Result When

question 51

Multiple Choice

A new deposit to the banking system can result when

• A)the Bank of Canada buys a government security from a firm, which keeps the proceeds from the sale in a company vault.
• B)an individual stashes cash in a mattress.
• C)the Bank of Canada buys a government security from a firm, which then deposits the proceeds from the sale in its account at a commercial bank.
• D)a new immigrant to Canada sends cash to his or her home country.
• E)the Bank of Canada sells a government security to a firm which then maintains the asset in a bank.

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Definitions:

Naive Forecast

A forecasting technique that assumes future values will be the same as past values, often used as a baseline for more complex models.

Time-series Data

Data points collected or recorded at successive points in time, often used to analyze trends, cycles, or patterns.

Seasonal Variation

Periodic fluctuations in data or phenomena that occur at regular intervals within a year due to seasonal factors.

Cycles

Periods or sequences in a system or process that repeat in a regular pattern, such as the phases of economic growth and decline or the operation of machinery.