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Unformatted text preview: and foreign bank deposits o Central banks can change the quantity of official reserve assets by buying or selling reserve assets on open markets o If the Bank of Canada wants to increase its holdings of reserve assets it will sell dollars to buy foreign assets o If the Bank of Canada wants to decrease its holdings of reserve assets it will sell foreign assets to buy dollars...
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This note was uploaded on 10/21/2010 for the course ECON 102 taught by Professor ? during the Fall '08 term at Waterloo.
- Fall '08