When the Bank of Canada Sells Government Securities to a Bank

question 12

Multiple Choice

When the Bank of Canada sells government securities to a bank, how are the Bank of Canada's assets affected?

• A)The bank's reserves held at the Bank of Canada increase.
• B)The bank's reserves held at the Bank of Canada decrease.
• C)Bank of Canada notes increase.
• D)The amount of the Bank of Canada's government securities increases.
• E)The amount of the Bank of Canada's government securities decreases.

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Definitions:

Biological Parents

The parents who contributed their genetic material to the birth of a child.

Delusional Disorder

A psychiatric condition marked by the presence of non-bizarre delusions without other significant psychotic symptoms.

Psychotic Symptoms

Symptoms involving a break with reality, such as hallucinations or delusions.

Functioning

Refers to the way in which someone or something operates or performs, often used in the context of an individual's ability to carry out daily activities or tasks.