What happens to the overnight interest rate-borrowed

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Using the supply and demand analysis of the marker for reserves, determine what happens to the overnight interest rate, borrowed and non-borrowed reserves, holding everything constant

a) if Banks expect an unusually large increase in withdrawals from chequing deposit accounts in the future.

b) if there was a switch from deposits into currency (holding everything else constant)?

c) If the Bank of Canada uses the non-conventional monetary policy tool of Quantitative Easing.

Reference no: EM131097323

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