Central Banks - open market operations - deposit switching
4 important questions on Central Banks - open market operations - deposit switching
How does the government hold large deposits at the central bank and at various banks? Who is responsible for managing those accounts?
it is managed by the central bank
How can the central bank increase or decrease the reservees?
What is the process called that shifts the government accounts from central bank to the commercial bank or in the other direction?
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What would happen to reserves If the government of canada writes cheques in a government account held in commercial banks into the government accounts that it holds and it deposit those cheques? What will happen for the banks excess reserves?
the banks will have less reserves, and start reducing its loans, and creating less deposit money
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