If the Bank of Canada lends five banks a total of $150 million but depositors withdraw $80 million and hold it as currency, what happens to reserves and the monetary base? Assume that every bank holds any excess reserves that result from these transactions. First show the final impact of these transactions on the T-account of the banking system. (Select the correct choice below, and fill in the answer boxes to complete your choice. Type integers or decimals. Enter a negative value to indicate a decrease, and enter a positive value to indicate an increase. Do not include plus signs in your responses.) OA. Liabilities Assets Loans (borrowings from the Bank of Canada) Currency m Reserves m m Chequable deposits $m OB. Assets Liabilities Reserves m Loans (borrowings from the Bank of m Canada) Chequable deposits $ m O C. Assets Liabilities Loans (borrowings from the Bank of $ Canada) Reserves $ m m Chequable deposits $ m OD Assets Liabilities UU. Liabilities Chequable deposits $ m m Assets Reserves $ Loans (borrowings from the Bank of $ Canada) m Show the final impact of these transactions on the T-account of the nonbank public. (Select the correct choice below, and fill in the answer boxes to complete your choice. Type integers or decimals. Enter a negative value to indicate a decrease, and enter a positive value to indicate an increase. Do not include plus signs in your responses.) OA. Assets Liabilities Chequable deposits $ Currency $ m m OB. Assets Liabilities Currency $ m Chequable deposits $ m C. Assets Liabilities $ Securities $ m Currency m Chequable deposits $ m OD Assets Liabilities Chequable deposits $ m Currency $ m Show the final impact of these transactions on the T-account of the Bank of Canada. (Select the correct choice below, and fill in the answer boxes to complete your choice. Type integers or decimals. Enter a negative value to indicate a decrease, and enter a positive value to indicate an increase. Do not include plus signs in your responses.) OA. Liabilities Assets Loans (borrowings from the Bank of $ Canada) Securities $ m Reserves m m OB Liabilities Assets Loans (borrowings from the Bank of $ Canada) Reserves m m Oc. Liabilities Assets Loans (borrowings from the Bank of $ Canada) m Reserves $ m Currency in circulation m OD. Assets Liabilities Loans (borrowings from the Bank of $ Canada Reserves $ m m circulation OD. Assets Liabilities Loans (borrowings from the Bank of Canada) Reserves m Currency in circulation m What happens to reserves in the banking system? (Select the correct choice below and, if necessary, fill in the answer box to complete your choice. Type an integer or a decimal as needed. Enter a positive value as needed. Do not include a plus sign in any response.) O A. Reserves increase by $ million OB. Reserves decrease by $ million. O C. Reserves do not change. What happens to the monetary base? (Select the correct choice below and, if necessary, fill in the answer box to complete your choice. Type an integer or a decimal as needed. Enter a positive value as needed. Do not include a plus sign in any response.) O A. The monetary base decreases by $ million OB. The monetary base increases by S million O C. The monetary base does not change. If the Bank of Canada lends five banks a total of $150 million but depositors withdraw $80 million and hold it as currency, what happens to reserves and the monetary base? Assume that every bank holds any excess reserves that result from these transactions. First show the final impact of these transactions on the T-account of the banking system. (Select the correct choice below, and fill in the answer boxes to complete your choice. Type integers or decimals. Enter a negative value to indicate a decrease, and enter a positive value to indicate an increase. Do not include plus signs in your responses.) OA. Liabilities Assets Loans (borrowings from the Bank of Canada) Currency m Reserves m m Chequable deposits $m OB. Assets Liabilities Reserves m Loans (borrowings from the Bank of m Canada) Chequable deposits $ m O C. Assets Liabilities Loans (borrowings from the Bank of $ Canada) Reserves $ m m Chequable deposits $ m OD Assets Liabilities UU. Liabilities Chequable deposits $ m m Assets Reserves $ Loans (borrowings from the Bank of $ Canada) m Show the final impact of these transactions on the T-account of the nonbank public. (Select the correct choice below, and fill in the answer boxes to complete your choice. Type integers or decimals. Enter a negative value to indicate a decrease, and enter a positive value to indicate an increase. Do not include plus signs in your responses.) OA. Assets Liabilities Chequable deposits $ Currency $ m m OB. Assets Liabilities Currency $ m Chequable deposits $ m C. Assets Liabilities $ Securities $ m Currency m Chequable deposits $ m OD Assets Liabilities Chequable deposits $ m Currency $ m Show the final impact of these transactions on the T-account of the Bank of Canada. (Select the correct choice below, and fill in the answer boxes to complete your choice. Type integers or decimals. Enter a negative value to indicate a decrease, and enter a positive value to indicate an increase. Do not include plus signs in your responses.) OA. Liabilities Assets Loans (borrowings from the Bank of $ Canada) Securities $ m Reserves m m OB Liabilities Assets Loans (borrowings from the Bank of $ Canada) Reserves m m Oc. Liabilities Assets Loans (borrowings from the Bank of $ Canada) m Reserves $ m Currency in circulation m OD. Assets Liabilities Loans (borrowings from the Bank of $ Canada Reserves $ m m circulation OD. Assets Liabilities Loans (borrowings from the Bank of Canada) Reserves m Currency in circulation m What happens to reserves in the banking system? (Select the correct choice below and, if necessary, fill in the answer box to complete your choice. Type an integer or a decimal as needed. Enter a positive value as needed. Do not include a plus sign in any response.) O A. Reserves increase by $ million OB. Reserves decrease by $ million. O C. Reserves do not change. What happens to the monetary base? (Select the correct choice below and, if necessary, fill in the answer box to complete your choice. Type an integer or a decimal as needed. Enter a positive value as needed. Do not include a plus sign in any response.) O A. The monetary base decreases by $ million OB. The monetary base increases by S million O C. The monetary base does not change
