How would each of the following affect the Canadian money supply? Explain.
a. Banks decide to hold more reserves as a precaution against bank runs.
b. People withdraw cash from their bank accounts for Christmas shopping.
c. The Bank of Canada sells gold to the public.
d. The introduction of automated teller machines, which allow people to withdraw cash from the bank as needed, makes deposits relatively more convenient.
e. The federal government sells $20 billion of new government bonds to the Bank of Canada. The proceeds of the sale are used to pay government employees.
f. The Bank of Canada sells some of its government securities in Tokyo for yen.