If the Bank of Canada Enters the Open Market and Purchases

question 5

Multiple Choice

If the Bank of Canada enters the open market and purchases $1000 of government securities,what will be the eventual change in the money supply given a 10% target reserve ratio in the commercial banking system?

• A)decrease of $1000
• B)decrease of $5000
• C)decrease of $10 000
• D)increase of $5000
• E)increase of $10 000

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Definitions:

Cohort Death Rate

is a measure of mortality rates within a defined cohort of individuals over a specific period of time, illustrating the rate at which members of the cohort die.

Grandparents

The parents of a person's father or mother – paternal or maternal.

Healthier

A state of improved physical, mental, or social well-being, often as a result of changes in lifestyle, environment, or healthcare.

Wealthier

Having a greater amount of money, resources, or assets.