please do not copy off the other answers posted on here, they are incorrect. I dont need paragraph answers, please follow the instructions in BLUE in the first picture.
4 Use the consolidated balance sheet of chartered banks in Canada and the balance sheet of the Bank of Canada to demonstrate the effect of each of the following transactions on chartered bank reserves. a. The Bank of Canada purchases securities from banks. Assume that the initial reserve ratio is 20 percent. b. Chartered banks borrow $1 billion from the Bank of Canada at the bank rate. c. The chartered banks reduce their desired reserve ratio. Assume that the reserve ratio is decreased from 20 percent to 19 percent. Instructions: Enter your answers as whole numbers in the gray-shaded cells of both tables below. Consolidated Balance Sheet: All Chartered Banks A B Assets: $ 40 Reserves Securities 60 Loans 102 Liabilities and net worth: Checkable deposits Loans from the Federal Reserve Banks 200 2 Consolidated Balance Sheet: Bank of Canada A B Assets: Securities $283 Imano to commercial hanke Consolidated Balance Sheet: Bank of Canada A B Assets: Securities S283 Loans to commercial banks 2 Liabilities and net worth: Reserves of commercial banks 40 Treasury deposits 5. Federal Reserve Notes 225 Other liabilities and net worth 15 d. Chartered banks increase their reserves after the bank of Canada increases the interest rate that it pays on reserves. Which of the columns in the above balance sheets represent this action? (Click to select) 4 Use the consolidated balance sheet of chartered banks in Canada and the balance sheet of the Bank of Canada to demonstrate the effect of each of the following transactions on chartered bank reserves. a. The Bank of Canada purchases securities from banks. Assume that the initial reserve ratio is 20 percent. b. Chartered banks borrow $1 billion from the Bank of Canada at the bank rate. c. The chartered banks reduce their desired reserve ratio. Assume that the reserve ratio is decreased from 20 percent to 19 percent. Instructions: Enter your answers as whole numbers in the gray-shaded cells of both tables below. Consolidated Balance Sheet: All Chartered Banks A B Assets: $ 40 Reserves Securities 60 Loans 102 Liabilities and net worth: Checkable deposits Loans from the Federal Reserve Banks 200 2 Consolidated Balance Sheet: Bank of Canada A B Assets: Securities $283 Imano to commercial hanke Consolidated Balance Sheet: Bank of Canada A B Assets: Securities S283 Loans to commercial banks 2 Liabilities and net worth: Reserves of commercial banks 40 Treasury deposits 5. Federal Reserve Notes 225 Other liabilities and net worth 15 d. Chartered banks increase their reserves after the bank of Canada increases the interest rate that it pays on reserves. Which of the columns in the above balance sheets represent this action? (Click to select)
