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10. The Bank of Canada's organization
The Big 5 commercial banks consist of CIBC, Scotiabank, BMO Bank of Montreal, RBC Royal
Bank, and TD Canada Trust .
Which of the following statements about the banking system in Canada is true?
The Bank of Canada sets reserve requirements that banks must follow.
The Bank of Canada uses reserve requirements to change the money supply.
Banks in Canada practise fractional-reserve banking.
One of the Bank of Canada's tools for changing the money supply isopen-market operations . In
order to increase the number of dollars in the Canadian economy (the money supply), the Bank of
Canada willbuy Canadian government bonds.

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