6) Which of the following is INCORRECT?
A) The currency owned by chartered banks is NOT included in themoney supply.
B) When chartered banks retire outstanding loans, the supply ofmoney is increased.
C) The net export effect may partially counteract anexpansionary fiscal policy.
D) The central bank expands money supply by lowering target forovernight lending rate and/or buying securities
11. Which of the following is correct? When the Bank of Canadabuys bonds on the open market, the money supply:
A) contracts and chartered bank reserves increase.
B) expands and chartered bank reserves decrease.
C) contracts and chartered bank reserves decrease.
D) expands and chartered bank reserves increase.
