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:

Psychographic Segmentation

The division of a market into segments based on consumer personality traits, values, attitudes, interests, and lifestyles.

Loyalty Segmentation

A marketing strategy that divides customers into groups based on their loyalty, typically measured by purchase frequency or engagement level.

Occasion Segmentation

The process of dividing the market into segments based on the different occasions when buyers identify they need a product, decide to purchase, or use the product.

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A holiday observed on February 14th each year, celebrated in many countries around the world, dedicated to expressing love and affection towards partners, family, and friends.