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The federal government maintains accounts with the Bank of Canada and the chartered banks. By utilizing a â drawdownâ cash management strategy, this refers to:
a) Increasing deposits and reserves and the availability of funds in the banking system
b) Adding money to the system places downward pressure on interest and gives banks an incentive to increase loans to consumers and business
c) Effectively increasing the supply of available cash balances from the banking system
d) Removing money from the system causes a contraction in the availability of loans to consumers and business, and this places upward pressure on interest rates
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