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The following are partial balance sheets for Bank of Canada and 14 LVTS Participants BANK OF CANADA 14 LVTS Participants / Primary Dealers Consolidated Balance

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The following are partial balance sheets for Bank of Canada and 14 LVTS Participants BANK OF CANADA 14 LVTS Participants / Primary Dealers Consolidated Balance Sheet Assets($BS): Liabilities ($Bs): Liabilities($Bs): Securities 100 Assets($Bs); LVTS Participant's Settlement Balances 1200 LVTS Participant's Settlement Balances 400 100 Deposits Government Deposits 5 SPRA OSRA ON SRA OSPRA 0 600 Securities 300 Advances to LVTS Participants 300 Government of Canada Deposits 250 Advances from Bank of Canada Currency in Circulation 900 Loans 325 Capital 70 What type of pressure is there on the overnight i-rate (lor)? Onone Osideways Oupward Odownward If the BOC wants to relieve this undesired pressure on the overnight i-rate (for)it will enter into a Ospecial Purchase and Resale Agreement (SPRA) Osale and Repurchase Agreement (SRA) Swap As a result of the BOC actions to relieve this undesired pressure on the overnight i-rate (lor), what are the final changes to the BOC and 14 LVTS Participants balance sheets? ONone BANK OF CANADA 14 LVTS Participants / Primary Dealers Consolidated Balance Sheet Assets($BS): Liabilities ($Bs); Liabilities($Bs): Securities Assets($BS): LVTS Participant's Settlement Balances Deposits LVTS Participant's Settlement Balances Government Deposits SPRA SRA SRA SPRA Securities . 2 Advances to LVTS Participants Advances from Bank of Canada Government of Canada Deposits Currency in Circulation Loans Capital 2

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