These set of questions are related to deposits/reserves/money supply /monetary base of the banking system/financial institutions. Any help and assistance to provide answers would be very much appreciated!

A hypothetical economy is having currency in circulation of $50m and deposits of $150m. Assume that reserves are $20m. Bank of Canada moves $100m dollars worth of government deposits out of its books and into commercial banks.

1. Show the relevant accounting entries and indicate the size of the effect on the monetary base.
2. Assume that the monetary base is $40m. Calculate the money supply.
3. Calculate the effect on the money supply of an increase in currency in circulation by $5m.
4. What would the bank do to offset the increase in the currency in circulation by $5m?