Use the following to answer questions: 
-(Table: Assets and Liabilities of the Banking System) Refer to Table: Assets and Liabilities of the Banking System.Suppose that the reserve ratio is 10% and the Bank of Canada sells $25 000 worth of Canadian Treasury bills to the banking system.If the banking system does NOT have any excess reserves,_____ will be _____ the money supply.
Definitions:
Annual Dividend
The total sum of the dividends paid to shareholders over a year, often cited per share.
Rates of Return
Financial results such as gains or losses on an investment over a predetermined time frame, expressed as a percentage of the original investment fee.
Net Cash Flows
The amount of cash that is generated or lost by a business in a given time period, calculated as cash inflows minus cash outflows.
Rate of Return
The returns or deficits generated by an investment over a certain span, represented as a percentage of the initial financial commitment.
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