i A five-dollar bill issued by the Bank of Canada is:

A liability of the Bank of Canada until it is spent

Your liability if you hold that note

An asset of the Bank of Canada

A liability of the Bank of Canada

a] Hov.r is the reserve ratio in the banking system dened? 0 Cash balances held by banks relative to their equity 0 Cash and central bank deposits held by banks relative to their deposit liabilities 0 Cash and central bank deposits held by banks relative to their outstanding loans 0 Cash balances held by banks relative to their liabilities b: If the reserve ratio is 0.4, then the money multiplier is equal to _. O 2.5 O 4 O 2 O 0.25 {:1 Consider a situation where the reserve ratio is 5%. If Lena deposits $100 into her bank account. then the total deposits in the banking system (including her $100) will be equal to: 0 $2,000 0 $20,000 0 $10,000 0 $400 d: Where do bank prots come from? O Clearing cheques with other banks 0 Net interest income 0 Issuing nev.r bonds to the public 0 All of the answers are correct at What service does the Bank of Canada provide to commercial banks in Canada? 0 Take deposits from banks for interbank cheque-cleanng settlements 0 Issues bank notes 0 Set minimum reserve ratios for banks 0 All ofthe answers are correct f) Suppose Person A deposits $100 into the Royal Bank of Canada. This bank has a reserve ratio of 0.2. This means that if Person E walks in and wants to get a loan, this person can get a loan of maximum 0 $100 0 $80 0 $500 0 $20 9:: Continue with part (0: Suppose Person B pays this amount to his landlord. Person C. Person C deposits this amount into the Bank of Montreal. This bank also has a reserve ratio of 0.2. If Person D walks in and wants to get a loan, the maximum amount he can borrow is equal to 0 $80 0 $400 0 $18 0 $64 ht What is the approximate size of the reserve ratio of Canadian banks? 0 10% O 25% O 50% O 1%