If There Is No Change in the Quantity of Currency,the

question 19

Multiple Choice

If there is no change in the quantity of currency,the purchase of $100 million of government bonds by the Bank of Canada will cause reserves at banks to

• A) decrease by $100 million.
• B) increase by $100 million.
• C) decrease by less than $100 million.
• D) increase by less than $100 million.

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Definitions:

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility because the responsibility is spread across the entire group.

Distressing Situation

An event or circumstance that causes anxiety, sorrow, or pain, often triggering emotional or psychological stress.

Presence

The state or fact of existing, occurring, or being present in a place or thing.

Self-Employed

A person who works for themselves and does not receive a salary from an employer, but instead earns income directly from their business or profession.