Which of the Following Best Describes the Consequences of a Decrease

question 117

Multiple Choice

Which of the following best describes the consequences of a decrease in the bank rate?

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

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