Question 17 (1.5 points) This table shows the balance sheet of the First National Bank. Assume the desired reserve ratio is 15 percent. Assets Liabilities and net worth Cash Reserves $50,000 Demand Deposits $120,000 Securities 75,000 Stock shares 130,000 Loans 25,000 Property 100,000 If a cheque for $14,000 is drawn and cleared against this bank, its reserves and demand deposits will be, respectively: $50,000 and $120,000. $36,000 and $106,000. $36,000 and $120,000. $50,000 and $106,000.Question 16 (1 point) The Bank of Canada: O supplies the economy with paper currency. O performs all of these functions. O acts as a fiscal agent for the federal government. O acts as a lender of last resort.Question 18 (3 points) Consider the economy of Greece. Assume, during the course of a day, Greece has a total of 10 units of labour force which it can employ to produce two products: bread and cheese. To produce each loaf of bread, Greece has to employ 1.0 unit(s) of labour, while producing one wheel of cheese requires 2.0 unit(s) of labour. Assume the terms of trade in the international markets are one loaf of bread for 0.9 wheel(s) of cheese in. What is the maximum wheels of cheese that the Greeks can consume during a day? (Round your answer to one decimal place and write it without units.) Your Answer: Answer Hide hint for Question 18 Remember that the Greeks can decide to either produce these themselves or to trade for them in the international markets.Question 19 (2 points) Suppose the Canadian economy is currently in a demand driven recession. To combat the recession, the Bank of Canada has increased the money supply by $20 million. This, in turn, has led to a 2% decline in the interest rate and a $10 million increase in the demand for investment (at least, initially). However, we know that such a stimulus triggers a chain of events. Which one of the followings cannot be among the consequences? an initial increase in income, leading to even more consumption and a further shift in the AD a rise in the transaction demand for money a subsequent rise in the interest rate, offsetting part of the initial decrease a rise in the price level, leading to a higher transactional demand for moneyQuestion 20 (2 points) Suppose the desired reserve ratio in Canada is 20%. Assume that the Bank of Canada has decided to increase the total quantity of money in the economy-as measured by M1-by $130 million. The Bank plans to do this by printing Canadian dollars. How much money must the Bank print to increase the money supply by the desired amount? (Calculate your answer in millions of CAD, round it to two decimal places, and write it without units. E.g., write 1.00 for $1 million.) Your