93) A new deposit to the banking system can result when A) the Bank of Canada se
ID: 1113497 • Letter: 9
Question
93) A new deposit to the banking system can result when A) the Bank of Canada sells a government security to a firm which then maintains the asset in a bank. B) the Bank of Canada buys a government security from a firm, which then deposits the proceeds from the sale in its account at a commercial bank. C) a new immigrant to Canada sends cash to his or her home country. D) an individual stashes cash in a mattress. E) the Bank of Canada buys a government security from a firm, which keeps the proceeds from the sale in a companv vault.Explanation / Answer
93) Option B
the bank of canada buys a government security from a firm , which then deposits the proceeds from the sale in its account at a commercial bank.
In this case a new deposit to the banking system results when the sale proceeds of government are deposited with the commercial bank.
16) Option E
None of the above
New deposit means the additional money flowing to the banking system which is not see in any of the options given.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.