Assume That the Desired Reserve Ratio for the Chartered Banks

question 36

Multiple Choice

Assume that the desired reserve ratio for the chartered banks is 25 percent.If Bank of Canada buys $3 billion in government securities from chartered banks we can say that, as a result of this transaction, the lending ability of the chartered banking system will:

• A)decrease by $9 billion.
• B)increase by $9 billion.
• C)increase by $15 billion.
• D)increase by $12 billion.

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Definitions:

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A branch of medicine that deals with the care and development of infants, children, and adolescents, as well as their diseases.

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The science or practice of consuming and using foods and nutrients for growth, repair, and maintaining good health.

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The state of the air passage being open and unblocked, allowing air to move freely in and out of the lungs.

Prone Position

A body posture in which a person lies flat with the chest down and the back up.