d) Show the effect of the repurchase transaction (as specied by you in c.) on Taccounts of the BoC and Primary Dealer. Assume the transaction is worth $200 million Bank of Canada Primary Dealers (LVTS participants} Assets Liabilities Assets Liabilities e) Assuming no other transaction occurs, what is the eect of the new settlement balances position going to be on the overnight interest rate towards the end of the day? 2) Assume the Settle Balances are in a surplus position at the end of the day. How does the Bank of Canada neutralizes them? Explain with the help of Taccounts below. Assume SB are in surplus of +$2{]{] million Bank of Canada Primary Dealers (LVTS participants) Assets Assets Liabilities