Initial Balance Sheets Bank of Canada ($m) Chartered Banks Consolidated Balance Sheet (5m) Assets Securities Advances to Chartered Banks Llabilities 370 Bank Deposits 30 Government Deposits Notes in circulation 800 Assets 80 Cash Reserves 60 Securities 260 Loans Liabilities 80 Deposits 70 Bank of Canada Borrowing 750 Government Deposits 80 TO BOC Implements monetary policy and buys $5b worth of securities from chartered banks. Assume r=109. Assuming all other factors are held constant, what are the initial changes to the balance sheets before the money multiplier process as a result of BOC buying securities? Balance Sheets After Bond Purchase (Before Money Multiplier) Bank of Canada (5m) Chartered Banks Consolidated Balance Sheet ($m) Assets Liabilities Cash Deposits Reserves Liabilities Assets . a Securities Bank Deposits . Securities . Advances to Chartered Banks Government Deposits Bank of Canada Borrowing . Loans Notes in circulation Government Deposits