Which of the Following Best Describes the Outcome of an Increase

question 181

Multiple Choice

Which of the following best describes the outcome of an increase in the bank rate?

• A)Banks will borrow more from Bank of Canada, so reserves increase.
• B)Banks will borrow more from Bank of Canada, so reserves decrease.
• C)Banks will borrow less from Bank of Canada, so reserves increase.
• D)Banks will borrow less from Bank of Canada, so reserves decrease.