Which of the following best describes the process of open market purchases conducted by the Bank of Canada?
A)The Bank of Canada buys Treasury bills, which increases the money supply.
B)The Bank of Canada buys Treasury bills, which decreases the money supply.
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.

Question

Quizplus · Accepted Answer

Open market purchases conducted by the Bank of Canada involve buying Treasury bills, which injects money into the economy and increases the money supply.

Which of the Following Best Describes the Process of Open