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If Bank of Canada sells $200m of bonds to Royal Bank. What happens to reserves and monetary base? Use T-accounts to explain your answer. If
- If Bank of Canada sells $200m of bonds to Royal Bank. What happens to reserves and monetary base? Use T-accounts to explain your answer.
- If Bank of Canada buys $100m of bonds from the public in cash. What happens to reserves and monetary base? Use T-accounts to explain your answer.
- Royal bank receives $100m of deposits and decided not to lend any money. How much deposit creation takes place for the entire banking system? Use T-accounts to explain your answer.
- If Bank of Canada lends $200m of bonds to Royal Bank, but depositors withdraw $100m and hold it as cash. What happens to reserves and monetary base? Use T-accounts to explain your answer.
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