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The following are partial balance sheets for the Bank of Canada and the 14 LVTS Participants: 14 LVTS Participants / Primary BANK OF CANADA
The following are partial balance sheets for the Bank of Canada and the 14 LVTS Participants: 14 LVTS Participants / Primary BANK OF CANADA Dealers Consolidated Assets(SBS): Liabilities (SBS): Assets(SBS): Liabilities(SBS): Securities 1200LVTS -50 LVTS -50Deposits 250 Participant's Participant's Government 50 Settlement Settlement Deposits Balances Balances OSRA OSRA OSPRA SPRA Advances to LVTS Participants 300 Government 550 Securities 250Advances 300 of Canada from Bank Deposits of Canada Currency in 900 Loans Circulation 325Capital 70 What type of pressure is there on the overnight i-rate (ir)? Onone Osideways Cupward Odownward if the BOC wants to relieve this undesired pressure on the overnight I-rate (or) by neutralizing the settlement balance using Government of Canada accounts, it will move Government Odeposits from BOC to Odeposits from LVTS LVTS Participants Participants to BOC Oforeign reserve deposits from foreign reserve deposits from BOC to LVTS Participants LVTS Participants to BOC Participants As a result of the BOC actions to relieve this undesired pressure on the overnight i-rate (lor), what are the final changes to the BOC and 14 LVTS Participants balance sheets? BANK OF CANADA 14 LVTS Participants / Primary Dealers Consolidated Assets(SBS): Liabilities (SBS): Assets(SBS): Securities LVTS LVTS Participant's Participant's Settlement Settlement Balances Balances SPRA Advances to LVTS Participants 4 SRA Government of Canada Deposits Currency in Circulation SRA Securities Loans Liabilities($Bs): Deposits k " th 4 " Government Deposits SPRA Advances from Bank of Canada Capital
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To answer the questions related to the balance sheet provided lets break it down stepbystep First Image Explanation The first table shows the partial balance sheets for the Bank of Canada BoC and the ...Get Instant Access to Expert-Tailored Solutions
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