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I need assistance with theses questions Great White North Bank Balance Sheet As at Dec. 31, 2017 Assets Liabilities Cash Reserves $ 20,000 Demand Deposits

I need assistance with theses questions

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Great White North Bank Balance Sheet As at Dec. 31, 2017 Assets Liabilities Cash Reserves $ 20,000 Demand Deposits $100,000 Loans to Customers 50,000 Investment in Securities 30,000 Equity Fixed Assets 20.000 Shareholders' Equity 20.000 Total Assets $120,000 Total Liabilities & Equity $120,000 a. What percent of its demand deposits is this bank holding in cash reserves (the reserve ratio)? (1 mark) b. If a deposit of $10,000 is made, how much of this is lent out to maintain the same reserve ratio? How much can bank deposits in the system potentially increase as a result? (2 marks) C. Show the balance sheet after the bank receives the $10,000 deposit and then makes loans from that deposit. (2 marks) Part D- Monetary Policy (5 marks) Go to the Bank of Canada's web site. Using information from the site related to Monetary Policy answer the following in your own words: a. What is the main objective of monetary policy? (1 mark) b. Explain what is meant by the Target for the Overnight Rate (Key Policy Interest Rate) and identify the current rate. (1 mark)

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