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Suppose a member of the non-bank public wants to hold more currency and so withdraws $50 million in cash from their chequing account. Show
Suppose a member of the non-bank public wants to hold more currency and so withdraws $50 million in cash from their chequing account. Show the effect of this transaction on the T-account for the nonbank public, the banking system and the Bank of Canada. Specifically 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 Assets Nonbank Public Liabilities Blank 1; Blank 2 (1 mark) Banking System Assets Blank 3; Blank 41 (1 mark) Liabilities
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