please fill in all answers
In the table below you will find simplified consoldated balance sheets for the chartered banking system and the Bank of Canodi. Use columns 1.3 to indicate how the balance sheets would read after each of transactions in parts (0) 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 billors of dollars a. A decline in the bank rate prompts chartered banks to borrow an addaional $6 balion from the Bank of Canado, Show the new bolance-sheet figures in column 1 of each table. b. The Bank of Canada sells $8 bilion in securities to the public. who pay for the bonds with cheques. Show the new balance sheet figures in column 2 of eoch table. c. The Bank of Canada bays $7 blition 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, asiling 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 2. Reserves from $3410$ billion. 3. Money-creating potential by $ billion. d. Now review all of the above 3 transactions, asking yourself these three questions: (7) What change, If any, took place in the money supply as a direct and immediate result of coch transaction? (2) What increase or decrease in chartered banks' cash reserves took place in eoch 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 2. Reserves from $34 to $ billion. 3. Money-creating potential by $ bilion. Transaction b: 1. The money supply by $ billion. 2. Reserves from $34 to $ bilion. 3. Money-creating potential by $ bilion. Transaction e: 1. The money supply 2. Reserves from $34 to $ billion. 3. Money-creating potential by $ billion. In the table below you will find simplified consoldated balance sheets for the chartered banking system and the Bank of Canodi. Use columns 1.3 to indicate how the balance sheets would read after each of transactions in parts (0) 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 billors of dollars a. A decline in the bank rate prompts chartered banks to borrow an addaional $6 balion from the Bank of Canado, Show the new bolance-sheet figures in column 1 of each table. b. The Bank of Canada sells $8 bilion in securities to the public. who pay for the bonds with cheques. Show the new balance sheet figures in column 2 of eoch table. c. The Bank of Canada bays $7 blition 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, asiling 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 2. Reserves from $3410$ billion. 3. Money-creating potential by $ billion. d. Now review all of the above 3 transactions, asking yourself these three questions: (7) What change, If any, took place in the money supply as a direct and immediate result of coch transaction? (2) What increase or decrease in chartered banks' cash reserves took place in eoch 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 2. Reserves from $34 to $ billion. 3. Money-creating potential by $ bilion. Transaction b: 1. The money supply by $ billion. 2. Reserves from $34 to $ bilion. 3. Money-creating potential by $ bilion. Transaction e: 1. The money supply 2. Reserves from $34 to $ billion. 3. Money-creating potential by $ billion
