Question 41 Banking System IA B Bank of Canada A B Not yet answered Assets Assets Marked out of 2.00 P Flag question 36.0 Reserves Securities Loans 16.0 50.0 94.0 Securities Advances to Banks Liabilities Liabilities Deposits 160.0 Bank Deposits 16.0 Advance from BOC Gov't of Can Deposit 8.0 Notes in Circulation 12.0 Assume a reserve ratio of 10% if the Bank of Canada does a redeposit of $2B of Government of Canada funds from the BOC What are the initial changes in Column A for the banking system? a. Reserves increase to $18B Ob. Deposits increase to $162B c. Reserves and Deposits decrease by $2B O d. Both A and Bare correct Queetion 42 Banking System A B Bank of Canada A B Not yor swered Assets Assets Marka auto 2.00 Fles question 36.0 Reserves Securities Loans 16.0 50.0 94.0 Securities Advances to Banks Liabilities Liabilities Deposits 160.0 Bank Deposits 16.0 O d. Both A and B are correct Question 42 Banking System A B Bank of Canada B Not yet answered Marked out of 2.00 Assets Assets F Flag question 36.0 Reserves Securities 16.0 50.0 94.0 Securities Advances to Banks Loans Liabilities Liabilities Deposits 160.0 Bank Deposits 16.0 Advance from BOC Gov't of Can Deposit 8.0 Notes in Circulation 12.0 Using your answer from the previous question where the ROC conducts a $2B redeposit, what is the maximum new money that can be created by the banking system as a result of the BOC redenasit? a 180 O b. $18B c. 15.20 Od 1.8B Question 43 Banking System A B Bank of Canada B No yel areweled Marked out at 2.00 Flag question Assets Assets Reserves Securities 36.0 16.0 50.0 94.0 Securities Advances to Banks Loans Liabilities Liabilities Oc. 16.2B O d. 1.8B Question 43 Banking System A B Bank of Canada Not yet answered A B Marked out of 2.00 Assets Assets Flag question 36.0 Reserves Securities Loans 16.0 50.0 94.0 Securities Advances to Banks Liabilities Liabilities 160.0 Deposits Advance from BOC Bank Deposits 16.0 Gov't of Can Deposit 8.0 Notes in Circulation 12.0 Floans in column B for the banking system. Assume a reserve ratio of 10% After the $2B redepasit and the application of the multiplier what is the new amount O a $112B b. $948 O c. $18B Od 1808 Question 44 Banking System | B Bank of Canada B Not yet | Ased Martes auto 2.09 Flag question Assets Assets 16.0 Reserves Securities Securities Advances to Banks 36.0 50.0 910 b. $94B c. $18B d. 180B Question 44 Banking System A B Bank of Canada A B Not yet answered Maried out of 2.00 Assets Assets Flag question 16.0 36.0 Reserves Securities Loans Securities Advances to Banks 50.0 94.0 Liabilities Liabilities Deposits 160.0 Bank Deposits 16.0 Advance from BOC Gov't of Can Deposit 8.0 Notes in Circulation 12.0 After the $2B redeposit and the application of the multiplier what is the new amount of Deposits in column B for the banking system. Assume a reserve ratio of 10% a $160B Ob $18B O c. $1808 d. $1128 Previous page