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:

Target Market

A specific group of consumers at which a product or service is aimed, defined by demographic, geographic, and psychographic characteristics.

Percentage-of-Sales Method

A budgeting approach where advertising and marketing expenses are set as a fixed percentage of sales revenue.

Objective-and-Task Method

A budgeting approach in marketing that starts with defining specific objectives, determining the tasks needed to achieve those objectives, and estimating the cost of performing those tasks.

Budgeting Approach

A methodological process of creating a plan to spend an entity's resources, ensuring financial stability and goal achievement.