Which of the Following Will Not Happen When the Bank

question 83

Multiple Choice

Which of the following will not happen when the Bank of Canada buys bonds from the public in the open market?

• A)The desired reserve ratio will increase.
• B)The money supply will increase.
• C)The deposits of chartered banks will increase.
• D)Chartered bank reserves will increase.

---

Definitions:

Financial Performance

An indicator of how well an entity can use assets from its primary mode of business and generate revenues.

Residual Income

A measure of performance that calculates the income an investment generates above the minimum required return.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating income.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a specific period, typically used in return on investment calculations.