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if the Bank of Canada buys $1,000,000 of government securities from banks. If the desired reserve ratio is 10 percent, the banks' excess reserves will increase or decrease and by how much?

2007-03-01 09:40:34 · 1 answers · asked by Anonymous in Social Science Economics

1 answers

Bank of Canada decreases by -1,000,000
Government + 1,000,000

Need Bank of Canada's Holding to determine if they still have 10% reserve requirement.

2007-03-01 16:30:05 · answer #1 · answered by Giggly Giraffe 7 · 0 0

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