Initial Balance Sheets Bank of Canada ($m) Chartered Banks Consolidated Balance Sheet (5m) Assets Liabilities 800 Assets Securities Advances to Chartered Banks Liabilities 370 Bank Deposits 30 Government Deposits Notes in circulation 80 Cash Reserves 60 Securities 80 Deposits 70 Bank of Canada Borrowing 750 Government Deposits 80 260 Loans 10 BOC implements monetary policy and buys $5b worth of securities from chartered banks. Assume r=10%. Assuming all other factors are held constant, what are the initial changes to the balance sheets before the money multiplier process as a result of BOC buying securities? Balance Sheets After Bond Purchase (Before Money Multiplier) Bank of Canada ($m) Chartered Banks Consolidated Balance Sheet (sm) Assets Liabilities Assets Liabilities Securities Bank Deposits Cash Reserves Deposits Advances to Chartered Banks Government Deposits Securities . Bank of Canada Borrowing . Notes in circulation Loans Government Deposits