BOC implements monetary policy andbuys$5b worth of securitiesfrom chartered banks. Assume r=10%.

Initial Balance Sheets Bank of Canada ($m) Chartered Banks Consolidated Balance Sheet ($m) Assets Liabilities Assets Liabilities Securities 370 Bank Deposits 80 Cash Reserves 80 Deposits 800 Advances to Chartered Banks 30 Government Deposits 60 Securities 70 Bank of Canada Borrowing 80 Notes in circulation 260 Loans 750 Government Deposits 10 BOC implements monetary policy and buys $5b worth of securities from chartered banks. Assume r=10%. What are the initial changes to the balance sheets before the money multiplier process? Balance Sheets After Bond Purchase (Before Money Multiplier) Bank of Canada ($m) Chartered Banks Consolidated Balance Sheet ($m) Assets Liabilities Assets Liabilities Securities Bank Deposits Cash Reserves Deposits Advances to Chartered Banks Government Deposits Securities Bank of Canada Borrowing Notes in circulation Loans $ Government Deposits