Which of the Following Will Not Happen When the Bank

question 83

Multiple Choice

Which of the following will not happen when the Bank of Canada buys bonds from the public in the open market?

• A)The desired reserve ratio will increase.
• B)The money supply will increase.
• C)The deposits of chartered banks will increase.
• D)Chartered bank reserves will increase.

---

Definitions:

Raw Material Purchases

The acquisition of the basic inputs or resources that are converted through manufacturing processes into final products.

Factory Overhead

Costs related to the operation of a manufacturing plant which cannot be directly associated with specific units of production, such as utilities, maintenance, and management salaries.

Property Taxes

Property Taxes are levies imposed by local governments on real estate based on the property's value, used to fund public services and infrastructure.

Insurance

A financial product that offers protection against potential future losses or damages in exchange for a premium.