Which Statement Best Describes the Outcomes of Open-Market Purchases Conducted

question 95

Multiple Choice

Which statement best describes the outcomes of open-market purchases conducted by the Bank of Canada?

• A) Bank reserves increase, and the money supply increases.
• B) Bank reserves increase, and the money supply decreases.
• C) The Bank of Canada borrows from member banks, which increases the money supply.
• D) The Bank of Canada lends money to member banks, which decreases the money supply.

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Definitions:

Sensory Receptors

Specialized cells or structures in the body that detect stimuli from the environment and convert them into neural signals.

Blood Vessels

Tubes in the body through which blood circulates, including arteries, veins, and capillaries.

Circular Disk

A flat, round geometric shape or object that has a circular boundary.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter of the pupil and thus the amount of light reaching the retina.