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' Bank of Canada expects economy to slow down in the future. To prevent ination from falling, Bank wants to ease monetary conditions it lowers the operating band from 0-75% - 1.25% to 0.5% - 1% 3) identity the initial bank rate, deposit rate and target overnight intemt rate: b) identify the new bank rate, deposit rate, and the overnight interest rate target: c) If during the course of the day overnight lnds are trading above the target overnight rate, manager at the trading desk at 30C enters into (SPRAs or SEAS?) d) Show the effect of the repurchase transaction (as specied by you in c-) on Taccolmts of the 30C and Primary Dealer. Assume the transaction is worth $200 million Bank of Canada Primary Dealers (LVTS participants) Assets Liabilities Assets Liabilities e) Assuming no other transaction occurs, what is the e'ect of the new settlement balances position going to be on the overnight interest rate towards the end of the day