In the table below you will find simplified consolidated balance sheets for the chartered banking system and the Bank of Canada. Use

columns $1-3$ to indicate how the balance sheets would read after each of transactions in parts $($a$)$ to $($c$)$ is completed. Do not cumulate

your answers; that is$,$ analyze each transaction separately, starting in each case from the numbers provided. All accounts are in billions

of dollars.

a$.$ A decline in the bank rate prompts chartered banks to borrow an additional $$1$ billion from the Bank of Canada. Show the new

balance$-$sheet figures in column $1$ of each table.

b$.$ The Bank of Canada sells $$3$ billion in securities to the public, who pay for the bonds with cheques. Show the new balance sheet

figures in column $2$ of each table.

c$.$ The Bank of Canada buys $$2$ billion of securities from chartered banks. Show the new balance sheet numbers in column $3$ of each

table.

Instructions: All answers below are to be entered as whole numbers.

d$.$ Now review all of the above $3$ transactions, asking yourself these three questions:

$(1)$ What change, if any, took place in the money supply as a direct and immediate result of each transaction?

$(2)$ What increase or decrease in chartered banks' cash reserves took place in each transaction?

$(3)$ Assumina a desired reserve ratio of $20$ percent. what chanae in the monev$-$creatina potential of the chartered bankina svstem Now: d$.$ Now review all of the above $3$ transactions, asking yourself these three questions:

$(1)$ What change, if any, took place in the money supply as a direct and immediate result of each transaction?

$(2)$ What increase or decrease in chartered banks' cash reserves took place in each transaction?

$(3)$ Assuming a desired reserve ratio of $20$ percent, what change in the money$-$creating potential of the chartered banking system occurred as a result of each transaction?

Transaction a:

$1.$ The money supply

increased

$.$

$2.$ Reserves

increased

from $$33$ to $

$34$

billion.

$3.$ Money$-$creating potential

increased

by $

billion.

Transaction b:

$1.$ The money supply

decreased

by $

billion.

$2.$ Reserves

decreased

from $$33$ to $

billion.

$3.$ Money$-$creating potential

decreased

by $

billion.

Transaction c:

$1.$ The money supply

did not change

$.$

$2.$ Reserves

increased

from $$33$ to $

billion.

$3.$ Money$-$creating potential

increased

by $

billion. pls answer fully correctly thank you