When the Bank of Canada Sells Government Securities, Banks Have

question 117

Multiple Choice

When the Bank of Canada sells government securities, banks have ______ money to lend and economic growth ______.

• A) less; will slow
• B) less; will accelerate
• C) more; will slow
• D) more; will accelerate

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Definitions:

Service Revenue

Income earned by a company for services provided to customers or clients.

Credit Side

Refers to the right side of a ledger account and is where increases in liabilities, equity, and revenue are recorded.

Total Liabilities

The total amount of obligations owed by a company to third parties, including loans, accounts payable, mortgages, and other debts.

Debt Ratio

A financial ratio that compares a company's total debt to its total assets, indicating the degree of leverage and financial risk.