In the Simple Deposit Expansion Model, an Expansion in Chequable

question 20

Multiple Choice

In the simple deposit expansion model, an expansion in chequable deposits of $1000 when the desired reserve ratio is equal to 10 percent implies that the Bank of Canada ________.

• A) sold $1000 in government bonds
• B) sold $100 in government bonds
• C) purchased $1000 in government bonds
• D) purchased $100 in government bonds

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Definitions:

Transfer Price

The price charged for goods or services transferred between divisions or units of the same company.

Additional Parts

Extra components or pieces supplied beyond the original requirements, often used for repairs, replacements, or enhancements.

Idle Capacity

The available production capacity that is not being used, often indicating inefficiency or unmet demand.

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company, often used for budgeting and accounting purposes.