Fill in the blanks to make the following statements correct. a. Suppose the Bank of Canada purchases a $5,000 bond from Bob's Financial Firm, and Bob's deposits its cheque at the CIBC. This is a new deposit to the banking system and will allow the commercial banks to lend more b. If the CIBC has a target reserve ratio of 5 percent, it will keep $ 250 as reserves and will lend $ 4750 c. Assuming there is no cash drain from the banking system, the ultimate effect is an increase in deposits in the banking system of 20 x $5,000 = $ 100000 d. Suppose the Bank of Canada sells a $5,000 bond to Bob's Financial Firm, and Bob's pays for that bond with a cheque drawn on its account at the CIBC. This is a decrease of funds from the banking system and will cause the commercial banks to lend less e. If the CIBC pays the $5,000 from its reserves, its reserve ratio will then be below its target rate of 5 percent. $ 4750 in loans must be converted to reserves to restore the 5 percent target reserve ratio