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1)An open market sale of government securities by the Bank of Canada shifts the reserves curve Select one: A

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1)An open market sale of government securities by the Bank of Canada shifts the reserves curve Select one: A. demand for, leftward O B. demand for, rightward O C. supply of, rightward O D. supply of, leftward

2)RS 10 8 Interest rate (percent per year! 6 2 RD 0 100 200 300 400 500 600 Reserves on deposit at the Fed (billions of dollars) The figure above shows the market for bank reserves. If the central bank undertakes an open market purchase of government securities that changes the quantity of reserves by $100 billion, then the overnight loans rate will Select one O A. rise to 8 percent a year B. remain at 6 percent a year OC fail to 4 percent a year O D. None of these answers is correct