Question
the assets of the central bankthe foreign assets is 200cad, the domestic assets is 450cad. the liabilities of the central bnak, the currecy in circulation
the assets of the central bankthe foreign assets is 200cad, the domestic assets is 450cad. the liabilities of the central bnak, the currecy in circulation is 350 cad,the deposites of commercial banks is 150 cad, the deposits of government of canada is 150 cad. the euity of the central bank is 0. If the bank of canda sells 75cad worth of foreign asstes, and purchase domestic assets with 75cad, sells 25 cad worth of domestic assets, executes a re-deposit of 50 cad.
so what will the value of the foreign asstes and dometic asstest? and what will the value of currency in circulation, commercial bank deposits, government deposits and monetary base?
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