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Question 45 Suppose a member of the non-bank public deposits $100 million cash into their bank account. Show the effect of this transaction as follows:
Question 45 Suppose a member of the non-bank public deposits $100 million cash into their bank account. Show the effect of this transaction as follows: i) State the dollar amount and type of asset or liability for each T-account. ii) Indicate if the assets or liabilities are positive or negative Nonbank Public Assets Liabilities Blank 1; Blank 2 (1 mark) Banking System Assets Liabilities Blank 3; Blank 4 (1 mark) Banking System Liabilities Assets Blank 3; Blank 4 (1 mark) Bank of Canada Assets Liabilities Blank 5; Blank 6 (1 mark) i) is the monetary base affected by the increase in the public's deposit? (1 mark) ii) Are reserves affected by public's increase in deposits? If yes, how? (1 mark)
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