Assume That There Is a 25 Percent Desired Reserve Ratio

question 121

Multiple Choice

Assume that there is a 25 percent desired reserve ratio and that Bank of Canada buys $200 million worth of government securities.If the securities are purchased from the public, then this action has the potential to increase bank lending by a maximum of:

• A)$600 million, and also by $600 million if the securities are purchased directly from chartered banks.
• B)$800 million, and also by $800 million if the securities are purchased directly from chartered banks.
• C)$600 million, but by $800 million if the securities are purchased directly from chartered banks.
• D)$800 million, but only by $600 million if the securities are purchased directly from chartered banks.

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Definitions:

Gender Roles

The social and behavioral norms that are widely considered appropriate for individuals of a particular gender within a specific culture or society.

Operant Conditioning

Operant Conditioning refers to a method of learning where the likelihood of a behavior's occurrence is altered by either punishment or rewards.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others.

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond with their birth-assigned sex.